Paragraph 5

(1)

CTA 2010 is amended as follows.

(2)

In section 270 (overview of Part)—

(a)

after subsection (7) insert—

“(7A)
Chapter 8 makes provision about the reduction of supplementary charge by an allowance for capital expenditure incurred for the purposes of onshore oil-related activities.”;

(b)

in subsection (8)(c), for “357” substitute “ 356AA ”.

(3)

In section 333 (reduction of adjusted ring fence profits)—

(a)

in subsection (1), after “reduced” insert “ (but not below zero) ”;

(b)

omit subsection (2).

(4)

In section 356AA (as renumbered by paragraph 2)(definitions for Chapter 7), in the definition of “adjusted ring fence profits”, at the end insert “ ; but see also section 356DB (companies with allowances under Chapter 8 as well as this Chapter) ”.

(5)

In Schedule 4 (index of defined expressions)—

(a)

at the appropriate places insert—

“
adjusted ring fence profits (in Chapter 8 of Part 8) section 356JB
”;

“
cumulative total amount of activated allowance (in Chapter 8 of Part 8) section 356JB
”;

“
onshore allowance (in Chapter 8 of Part 8) section 356JB
”;

“
onshore oil-related activities (in Chapter 8 of Part 8) section 356BA
”;

“
relevant income (in Chapter 8 of Part 8) section 356E(3)
”;

“
site (in Chapter 8 of Part 8) section 356BC
”;

(b)

in the entries for “adjusted ring fence profits”, “authorisation day”, “eligible oil field”, “licensee” and “relevant income” (in each case, as those expressions are defined for Chapter 7 of Part 8 of CTA 2010), for “357” substitute “ 356AA ”.