Introduction Background Note
58.The field allowance reduces the amount of profits subject to the Supplementary Charge where fields meet specific criteria.  The allowance is currently available only for new oil fields.  A new oil field is an oil field which is a qualifying oil field (by virtue of satisfying certain criteria) and whose development is authorised for the first time on or after 22 April 2009.
59.The Government recognises the importance of securing ongoing investment in existing North Sea fields and infrastructure.  At Budget 2012 the Government therefore announced that it would introduce legislation to amend the scope of the field allowance, giving it the power to make an allowance available to fields whose development has previously been authorised.
60.The Government will engage further with industry on how such an allowance could be structured to facilitate investment while protecting Exchequer revenues. This section and Schedule make the necessary changes to CTA 2010 so that an allowance can be introduced by secondary legislation at a later date.