Corporation Tax Act 2010 section 349A

Additionally-developed oil field

Section 349A defines what constitutes an "additionally-developed oil field" for the purposes of the supplementary charge provisions relating to oil and gas companies.

• An oil field is classified as "additionally developed" if a development decision was made on or after 1 April 2015 in relation to additional development of that field.
• The additional development must involve significant capital expenditure beyond the original field development, reflecting a material change in the exploitation of the field.
• This classification is relevant because additionally-developed oil fields may qualify for investment allowances that reduce the amount of adjusted ring fence profits subject to the supplementary charge.
• The provision was introduced by Finance Act 2015, Schedule 12, paragraph 3, as part of reforms to encourage continued investment in mature oil and gas fields on the UK Continental Shelf.

---