The Investment Allowance and Cluster Area Allowance (Relevant Income: Tariff Receipts) Regulations 2019

Document Number:2019 No. 63
 
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Statutory Instruments

Corporation Tax

Made

16 th January 2019

Coming into force in accordance with regulation 1

The Treasury, in exercise of the powers conferred by section 332 F(3)(b) , (4) and (5) and section 356 JH(3)(b) , (4) and (5) of the Corporation Tax Act 2010(1) , make the following Regulations.

In accordance with section 332 F(8) and section 356 JH(8) of the Corporation Tax Act 2010 a draft of this instrument was laid before the House of Commons and approved by a resolution of that House.

Citation, commencement, effect and interpretation

  1. —(1) These Regulations may be cited as the Investment Allowance and Cluster Area Allowance (Relevant Income: Tariff Receipts) Regulations 2019 and come into force on the day after the day on which they are made.

    (2) These Regulations have effect in relation to tariff receipts(2) of a company in an accounting period beginning on or after 16 th September 2016.

    (3) In these Regulations references to a Chapter, Part or section are references to that Chapter, Part or section of the Corporation Tax Act 2010.

    Relevant income for investment allowance

  2. —(1) Tariff receipts are relevant income for the purposes of Chapter 6 A of Part 8 , where the condition in paragraph (2) is satisfied.

    (2) The condition is that when the tariff receipts are taken into account in calculating the company’s adjusted ring fence profits(3) for the accounting period, the tariff receipts are attributable to the qualifying oil field(4) mentioned at section 332 F(1)(a).

    Relevant income for cluster area allowance

  3. —(1) Tariff receipts are relevant income for the purposes of Chapter 9 of Part 8 , where the condition in paragraph (2) is satisfied.

    (2) The condition is that when the tariff receipts are taken into account in calculating the company’s adjusted ring fence profits for the accounting period, the tariff receipts are attributable to a licensed area or sub-area that is wholly or partly included in the cluster area(5) mentioned at section 356 JH(1)(a).

    Amendment of Part 8

  4. —(1) Part 8 is amended as follows—

    (2) In section 332 F (activation of allowance: no change of equity share) after subsection (8) insert—

    “(9) Where a tariff receipt of the company relates only partly to the oil field mentioned in subsection (1) , for the purposes of subsection (3)(b) the tariff receipt is to be attributed to the oil field on a just and reasonable basis.

    (10) If the company has entered into any arrangements the purpose, or one of the...

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