Corporation Tax Act 2010 section 356CA

Disqualifying conditions for section 356C(4)(b)

Section 356CA defines the two disqualifying conditions that prevent capital expenditure on a site from qualifying as relievable capital expenditure, based on a production threshold of 7,000,000 tonnes.

• A site is disqualified if its production is expected to exceed 7,000,000 tonnes.
• A site is also disqualified if its production has already exceeded 7,000,000 tonnes.
• For gas production, 1,100 cubic metres of gas at 15 degrees Celsius and one atmosphere of pressure is treated as equivalent to one tonne.
• Both conditions operate independently — either one being met is sufficient to disqualify the site.