Corporation Tax Act 2010 section 340

Introduction to section 341

Section 340 sets out the four conditions that must be satisfied in relation to a new oil field before a company can activate its field allowance, in circumstances where there has been no change in the company's equity share during the accounting period.

• This section acts as the gateway to section 341, which deals with the actual activation of field allowance for new oil fields.
• Four specific conditions must all be met before the field allowance can be activated.
• The section applies only where the company's equity share in the oil field has remained unchanged throughout the relevant accounting period.
• The provision is relevant to companies subject to the ring fence corporation tax regime for oil and gas extraction activities.