Introduction Details of the Schedule
2.Paragraph 2 abolishes PEA by providing that it is not to be calculated in respect of a future chargeable period.
3.Paragraph 3 makes amendments which are consequential upon the abolition of the allowance, but subject to Paragraph 4.
4.Paragraph 3(3) omits subsections (9)(a) (which calculates provisional expenditure allowance) and subsections (10) and (11) (which make certain adjustments to the provisional expenditure allowance calculation).
5.Paragraph 3(4) omits paragraph 11 of Schedule 17 to Finance Act (FA) 1980 which makes certain further adjustments to the provisional expenditure allowance calculation when a participator transfers its interest in an oil field.
6.Paragraph 3(5) provides that paragraph 3 only has effect for future chargeable periods, i.e. those beginning after 30 June 2009.
7.Paragraph 4 contains saving provisions. This paragraph only applies if provisional expenditure allowance has been calculated in respect a chargeable period which occurred before the PEA was abolished.
8.Paragraph 4(2) provides that, for future chargeable periods, the saved provisions (defined in subparagraph (3)) will continue to have effect as if they had not been amended by paragraph 3.