Section 356C | Generation of onshore allowance ^F1

(1)Subsection (2) applies where a company incurs any relievable capital expenditure in relation to a qualifying site.

(2)The company is to hold an amount of allowance equal to 75% of the amount of the expenditure.

(3)“Qualifying site” means a site whose development (in whole or in part) is authorised for the first time on or after 5 December 2013.

(4)Capital expenditure incurred by a company is “relievable” only if, and so far as—

(a)it is incurred for the purposes of onshore oil-related activities (see section 356BA), and

(b)neither of the disqualifying conditions is met at the beginning of the day on which the expenditure is incurred (see section 356CA).

(4A)Subsections (1) to (4) are subject to section 356CAA (which prevents expenditure on the acquisition of an asset from being relievable in certain circumstances).^F2

(5)Allowance held under this Chapter is called “onshore allowance”.

(6)Onshore allowance is said in this Chapter to be “generated” at the time when the capital expenditure is incurred (see section 356JA).

(7)Onshore allowance is referred to in this Chapter as being generated—

(a)“by” the company concerned,

(b)“at” the site concerned.

(8)Where capital expenditure is incurred only partly for the purposes of onshore oil-related activities, or the onshore oil-related activities for the purposes of which capital expenditure is incurred are carried on only partly in relation to a particular site, the expenditure is to be attributed to the site concerned on a just and reasonable basis.

(9)In this section, references to authorisation of development of a site—

(a)in the case of a site which is an oil field, are to be read in accordance with section 356IB;^F3

(b)in the case of a drilling and extraction site, are to be read in accordance with section 356J.