Section 356C — Finance Act 2014: Generation of onshore allowance

Generation of onshore allowance 356C 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).

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 351;

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