Commentary

D7.924 Onshore allowances

Corporate tax
Corporate tax | Commentary

D7.924 Onshore allowances

Corporate tax | Commentary

D7.924 Onshore allowances

As a replacement to the now repealed onshore field allowances (D7.923) there is a relief, for capital expenditure incurred1 on or after 5 December 20132 which will remove an amount equal to 75% of capital expenditure incurred by a company in relation to an onshore site from its adjusted ring fence profits for the purposes of supplementary charge3.

Where a company is entitled to allowances under these provisions, the investment allowance (D7.924A) and the cluster allowance (D7.924B) it may chose the order in which the relieving provisions are to be applied4. Prior to the introduction of the investment allowance and cluster allowance it was similarly provided that where a company held both field allowances (D7.923) and onshore allowances it could choose the order in which the allowances are to be used5.

Eligible expenditure

The allowance is given in respect of onshore oil related activities which are carried out onshore and falls within one of the following6:

  1.  

    (a)     acquisition,

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