Corporation Tax Act 2010 section 356A

Total field allowance for an additionally-developed oil field

Section 356A establishes how to calculate the total field allowance available for an oil field that has undergone additional development, by combining the original field allowance with any further allowances triggered by subsequent development authorisations.

• An additionally-developed oil field is one where a project-based development authorisation has been given after the field's initial development consent.
• The total field allowance for such a field is the sum of the original field allowance plus any additional field allowances arising from each subsequent development authorisation.
• Each additional development authorisation can generate its own separate field allowance, which is then added to the existing total.
• This provision was introduced by Finance Act 2015 to ensure that fields undergoing further investment receive appropriate recognition through increased allowances.

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