Corporation Tax Act 2010 section 344

Activation of field allowance

Section 344 provides the rules for how and when a field allowance becomes activated for a particular oil field.

• A field allowance is activated when a company first receives proceeds from selling oil won from the field, or when it first has an oil disposal or relevant appropriation from the field.
• Once activated, the field allowance applies from the start of the reference period in which that first sale, disposal or appropriation occurs.
• Activation is specific to each individual company — different companies with interests in the same field may activate their allowances at different times.
• Until a field allowance is activated, it cannot be used to reduce a company's adjusted ring fence profits for supplementary charge purposes.