Section 332C | Generation of investment allowance ^F1

(1)Subsection (2) applies where a company—^F1

(a)is a participator in a qualifying oil field, and^F1

(b)incurs any relievable investment expenditure on or after 1 April 2015 in relation to the oil field.^F1

(2)The company is to hold an amount of allowance equal to 62.5% of the amount of the expenditure.Allowance held under this Chapter is called “investment allowance”.^F1

(3)For the purposes of this section investment expenditure incurred by a company is “relievable” only if, and so far as, it is incurred for the purposes of oil-related activities (see section 274).^F1

(4)Subsections (1) to (3) are subject to—^F1

(a)section 332D (which prevents expenditure on the acquisition of an asset from being relievable in certain circumstances),^F1

(b)section 332DA (which restricts relievable expenditure in relation to an oil field that previously qualified for a field allowance under Chapter 7 as a new oil field),^F1

(c)section 332DB (which restricts relievable expenditure in relation to a project by reference to which an oil field previously qualified for a field allowance under Chapter 7 as an additionally-developed oil field), and^F1

(d)section 332DC (which prevents certain expenditure from being relievable if it relates to an oil field in respect of which onshore allowance may be obtained under Chapter 8).^F1

(5)Investment allowance is said in this Chapter to be “generated” at the time when the investment expenditure is incurred (see section 332K) and is referred to as being generated—^F1

(a)“by” the company concerned;^F1

(b)“in” the qualifying oil field concerned.^F1

(6)Where—^F1

(a)investment expenditure is incurred only partly for the purposes of oil-related activities, or^F1

(b)the oil-related activities for the purposes of which investment expenditure is incurred are carried on only partly in relation to a particular qualifying oil field,^F1

the expenditure is to be attributed to the activities or field concerned on a just and reasonable basis.