Corporation Tax Act 2010 section 356B

Overview

Section 356B provides an overview of Chapter 8, which deals with how relief for capital expenditure on onshore oil-related activities is given by reducing a company's adjusted ring fence profits for supplementary charge purposes.

• Relief for qualifying capital expenditure on onshore oil activities is given as a reduction of a company's adjusted ring fence profits
• An allowance held for a particular site must be "activated" by relevant income from that same site before it can reduce profits
• A company may elect to transfer allowances between different sites for which it holds a licence
• When a company disposes of its equity share in a licensed area, allowances must be mandatorily transferred to the new holder