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 payment | Type of allowance | Reference |
| Licence payments | Mineral extraction allowance | First-year or writing down allowances. See B3.419, B3.354 |
| Site restoration | Mineral extraction allowance | First-year or writing down allowances. See B3.409 |
| Reimbursed exploration costs | Mineral extraction | First-year or writing down allowances. See B3.419, B3.354 |
| Exploration and appraisal | Research and development | B3.702 |
| Tangible development drilling | Plant and machinery | First-year or writing down allowances. See B3.324C |
| Production facilities | Plant and machinery | First-year or writing down allowances. See B3.324C |
| Pipelines | Plant and machinery | First-year or writing down allowances. See B3.324C |
| Long-life assets | Plant and machinery | First-year (for expenditure incurred on or after 12 March 2008) or writing down allowances. See B3.324C |
| Plant and machinery partly used in ring fence trade and partly in another qualifying trade | Plant and machinery | Temporary first-year allowance of 100% for expenditure between 1 April 2021 and before 1 April 2023, see B3.324C |
| Onshore buildings | Structures and buildings allowance/Industrial |
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