Corporation Tax Act 2010 section 332K

When expenditure is incurred

Section 332K establishes the rules for determining when expenditure is treated as having been incurred for the purposes of the onshore oil and gas ring fence provisions in Chapter 6A.

• The general capital allowances timing rule from section 5 of the Capital Allowances Act 2001 applies equally to expenditure under this Chapter.
• Where regulations extend the definition of investment expenditure under section 332BA(1)(b), those same regulations may also specify when such expenditure is treated as incurred.
• These timing rules are subject to the override in section 332CA(3), which deals with expenditure incurred before a field is determined.
• The effect is that the timing of expenditure recognition for ring fence purposes follows established capital allowances principles, unless specific regulations or other provisions require otherwise.