The onshore allowance can be used to remove an amount equal to 75% of capital expenditure incurred1 by a company in relation to an onshore site from its adjusted ring fence profits for the purposes of the supplementary charge2.
Where a company is entitled to allowances under these provisions, the investment allowance (D7.924A) and the cluster allowance (D7.924B) it may choose the order in which the relieving provisions are to be applied3.
Eligible expenditure
The allowance is given in respect of onshore oil related activities which are carried out onshore and falls within one of the following4:
- Ìý
•ÌýÌýÌýÌý acquisition, enjoyment or exploitation of oil rights
- Ìý
•ÌýÌýÌýÌý searching for and/or extracting oil under licence
- Ìý
•ÌýÌýÌýÌý transporting oil, under licence to a place where a seller, in an arm's length transaction could reasonably be expected to deliver it to, or
- Ìý
•ÌýÌýÌýÌý initial treatment or storage of oil under licence.
Expenditure is excluded though if production from the site is expected to, or has, exceeded 7
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Web page updated on 17 Mar 2025 16:41