Introduction Summary
1.Section 93 introduces Schedule 32. Part 1 of Schedule 32 provide that where a connected person provides a decommissioning service to a person who is carrying on or has ceased to carry on a ring fence trade, the plant and machinery allowances in respect of decommissioning expenditure are restricted to the cost to the connected person of providing the service. Part 1 provides exceptions to this rule for certain expenditure to which the cost plus method is to be applied, and for expenditure in some circumstances where unconnected parties are co-licensees in the field. Part 1 also restricts allowances where a transaction, scheme or arrangement has an avoidance purpose. Part 2 of Schedule 32 provides similar rules where a connected person provides site restoration services to a person who is carrying on or has ceased to carry on a ring fence trade. Part 3 of Schedule 32 makes necessary amendments to the transfer pricing rules in TIOPA 2010.