Section 356CB | Expenditure not related to an established site ^F1

(1)A company may make an election under this section in relation to capital expenditure incurred by it for the purposes of onshore oil-related activities if the appropriate condition is met.

(2)The appropriate condition is that at the time of the election no site can be identified as a site in relation to which the expenditure has been incurred.

(3)An election may not be made before the beginning of the third accounting period of the company after that in which the expenditure is incurred.

(4)An election must specify—

(a)the expenditure in question,

(b)a site (“the specified site”) every part of which is, or is part of, an area in which the company is a licensee, and

(c)an accounting period of the company (“the specified accounting period”).

(5)The specified accounting period must not be earlier than the accounting period in which the election is made.

(6)Where a company makes an election under this section in relation to an amount of expenditure, that amount is treated for the purposes of this Chapter as incurred by the company—

(a)in relation to the specified site, and

(b)at the beginning of the specified accounting period.