Section 332I — Corporation Tax Act 2010: Introduction to sections 332IA and 332IB

Introduction to sections 332IA and 332IB 332I 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.