Commentary

D7.919 Capital allowances

Corporate tax
Corporate tax | Commentary

D7.919 Capital allowances

Corporate tax | Commentary

Capital expenditure

D7.919 Capital allowances

Most expenditure incurred in a petroliferous trade qualifies for capital allowances. The following table summarises the allowances generally available:

Type of paymentType of allowanceReference
Licence paymentsMineral extraction allowanceFirst-year or writing down allowances. See B3.419, B3.354
Site restorationMineral extraction allowance First-year or writing down allowances. See B3.409
Reimbursed exploration costsMineral extractionFirst-year or writing down allowances. See B3.419, B3.354
Exploration and appraisalResearch and developmentB3.711
Tangible development drillingPlant and machineryFirst-year or writing down allowances. See B3.324C
Production facilitiesPlant and machineryFirst-year or writing down allowances. See B3.324C
PipelinesPlant and machineryFirst-year or writing down allowances. See B3.324C
Long-life assetsPlant and machineryFirst-year (for expenditure incurred on or after 12 March 2008) or writing down allowances. See B3.324C
Onshore buildingsStructures and buildings allowance/Industrial buildings allowanceDivision B3.2

Where expenditure incurred after 9 March 1982, on an asset, is allowable for petroleum revenue tax purposes and is met by a regional development grant then, for the purposes of giving capital allowances within the

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