Commentary

B3.324C Expenditure wholly for a ring fence trade—first-year qualifying expenditure

Business tax
Business tax | Commentary

B3.324C Expenditure wholly for a ring fence trade—first-year qualifying expenditure

Business tax | Commentary

B3.324C Expenditure wholly for a ring fence trade—first-year qualifying expenditure

Under the North Sea tax regime, although companies are required to pay a supplementary corporation tax charge of 10% (20% before 1 January 2016, 32% before 1 January 2015), they may also obtain 100% first-year allowances for capital expenditure incurred wholly for the purposes of their trade of extraction of oil or gas in the UK or on the UK Continental Shelf ('ring fence' trade; see Division D7.9) which is subject to the supplementary charge. In addition, first-year allowances are to be given for certain expenditure incurred by a company

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial