Introduction Overview Overview
1081.This Chapter provides an allowance, a “field allowance”, which can reduce a company’s adjusted ring fence profits from oil and gas production in the UK and UKcontinental shelf (UKCS).
1082.The allowance is available to certain categories of new oil and gas fields in the UK/UKCS – small fields, ultra heavy oil fields and ultra high pressure/high temperature fields. Allowances from a company’s interests in all qualifying fields in an accounting period are then pooled and offset against adjusted ring fence profits. Any unused amounts in the pool are carried forward to the next accounting period.