Oil and Gas First Year Capital Allowances for plant and machinery
HM Revenue and Customs (HMRC) commissioned Ipsos to conduct a qualitative evaluation of the Oil and Gas First Year Capital Allowances for plant and machinery.
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HMRC commissioned Ipsos to conduct a qualitative evaluation of the Oil and Gas First Year Capital Allowances for plant and machinery.
The qualitative evaluation was carried out between February and June 2022 with 13 claimant companies of the Oil and Gas First Year Allowance (FYA) for plant and machinery.
FYA is a capital allowance for expenditure by oil and gas companies on plant and machinery operating in the ring fence which allows 100% of qualifying expenditure on plant and machinery wholly for use in such exploration or extraction to be deducted in the year the expenditure is incurred when calculating taxable profits.
The evaluation looked at 4 broad areas including impact, experience of claiming, appropriateness and proportionality of the relief and the claims process.