Section 332I | Introduction to sections 332IA and 332IB ^F1

(1)Sections 332IA and 332IB apply where—

(a)a company (“the transferor”) disposes of the whole or part of its share of the equity in a qualifying oil field, and

(b)one or more of the following conditions is met.

(2)The “unactivated allowance condition” is that immediately before the disposal the transferor holds unactivated investment allowance for the oil field.

(3)The “section 332DA expenditure condition” is that—

(a)immediately before the disposal the company has for the purposes of section 332DA (restriction where field qualified for field allowance as new field) a cumulative total of relevant expenditure attributable to its share of the equity in the oil field, and

(b)the date of the disposal falls before any date determined under section 332DA(5) (material completion).

(4)The “section 332DB expenditure condition” is that—

(a)immediately before the disposal the company has for the purposes of section 332DB (restriction where project in additionally-developed field qualified for field allowance) a cumulative total of relevant expenditure attributable to its share of project-related reserves in relation to the oil field, and

(b)the date of the disposal falls before any date determined under section 332DB(5) (material completion).

(5)In sections 332IA and 332IB—

(a)each of the companies to which a share of the equity is disposed of is referred to as “a transferee”, and

(b)references to conditions are to be read in accordance with this section.