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Section 332E | Reduction of adjusted ring fence profits

From legislation.gov.uk

(1)A company's adjusted ring fence profits for an accounting period are to be reduced by the cumulative total amount of activated allowance for the accounting period (but are not to be reduced below zero).

(2)In relation to a company and an accounting period, the “cumulative total amount of activated allowance” is—

Formula

A+C

where—

A is the total of any amounts of activated allowance the company has, for any qualifying oil fields, for the accounting period (see section 332F(2)) or for reference periods within the accounting period (see section 332H(1)), and

C is any amount carried forward to the period under section 332EA.