Corporation Tax Act 2010 section 337

Initial licensee to hold a field allowance

Section 337 establishes that when a new oil field is licensed, each initial licensee company automatically holds a field allowance based on its equity share in that field.

• From the date a new oil field is licensed, each company that is an initial licensee automatically receives a field allowance.
• The size of the field allowance a company holds is determined by its equity share in the oil field.
• This means the allowance is proportional — a company with a larger stake in the field receives a correspondingly larger field allowance.
• The field allowance applies from the very first day of licensing, ensuring it is available from the outset of the field's development.