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HMRC internal manual

Oil Taxation Manual

Field allowance: authorisation of development

Authorisation of development means either the Secretary of State or a Northern Ireland Department:

  • Granting a licensee consent for development for the field,
  • Serving on a licensee a programme of development for the field, or
  • Approving a programme of development for the field.

Consent for development does not include consent which is limited to the purpose of testing the characteristics of an oil-bearing area.

Development means winning oil from the field otherwise than in the course of searching for oil or drilling wells.

Where the development of a field is phased, only the first authorisation of development may trigger an allowance as a new field.

**  This guidance is superseded by the introduction of the Investment Allowance legislation in Finance Act 2015. This applies to investment expenditure incurred on or after 1 April 2015.  The relevant legislation is in Part 8 Chapter 6A of CTA 2010.  Transitional rules are at paragraphs 7 and 8 of Part 2 Schedule 12 Finance Act 2015.  Full updated guidance will be provided shortly.  **