Corporation Tax Act 2010 section 355C

"Deep water gas field"

Section 355C defines what constitutes a "deep water gas field" for the purposes of the investment allowance provisions applicable to oil and gas ring fence trades.

• A deep water gas field is an oil field where the gas content of the expected reserves meets a specified threshold and the water depth condition is satisfied.
• The gas content requirement is that at least half of the expected reserves, measured by reference to their gross calorific value, consist of gas.
• The water depth condition requires that the field lies beneath waters with a depth of at least 200 metres.
• This definition was introduced by Finance Act 2015 as part of the investment allowance regime designed to encourage development of more challenging offshore gas reserves.