Section 332H | Activation of allowance: reference periods ^F1

(1)The amount (if any) of activated allowance that a company has for a qualifying oil field for a reference period is the smallest of the following—

(a)the total amount of unactivated allowance that is attributable to the reference period and the oil field (see section 332HA);

(b)the company's relevant income from the oil field for the reference period (see subsection (2));

(c)in a case where section 332FB (activation limit applying in case of certain fields) applies, the relevant activation limit for the reference period and the oil field (see subsection (3)).

(2)The company's relevant income from the oil field for the reference period is so much of the company's relevant income from the oil field for the accounting period (see section 332F(3)) as arises in the reference period.

(3)If section 332FB (activation limit applying in case of certain fields) applies in relation to the oil field for the accounting period in which the reference period falls, the “relevant activation limit” for the reference period and the oil field is the amount that would be the total amount of unactivated allowance attributable to the reference period and the oil field if paragraph 7(3) of Schedule 12 to FA 2015 (conversion of unactivated field allowance) had never applied to any allowance attributable to the project in question.