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Official guidance
Oil Taxation Manual

OT50030 · Oil contractors ring fence: calculating the hire cap: contents

  • OT50032 · Oil contractors ring fence: calculating the hire cap: the relevant percentage
  • OT50034 · Oil contractors ring fence: calculating the hire cap: periods of less than full use and short accounting periods
  • OT50036 · Oil contractors ring fence: calculating the hire cap: multiple leases
  • OT50038 · Oil contractors ring fence: calculating the hire cap: total expenditure
  • OT50040 · Oil contractors ring fence: calculating the hire cap: total expenditure - original cost
  • OT50042 · Oil contractors ring fence: calculating the hire cap: total expenditure - enhancement costs
  • OT50044 · Oil contractors ring fence: calculating the hire cap: total expenditure - estimated amounts
  1. Oil contractors ring fence: calculating the hire cap: contents
  2. Oil contractors ring fence: calculating the hire cap: total expenditure

OT50038 | Oil contractors ring fence: calculating the hire cap: total expenditure

From HM Revenue & Customs · Oil Taxation Manual

There are two elements to the recognised expenditure to which the relevant percentage is applied in order to determine the hire cap:

  • original cost (see OT50040)

  • enhancement cost (see OT50042).

These values are calculated as at the beginning of each accounting period. But see the following pages for assets which are altered or acquired during an accounting period.

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