Capital allowances: extended ring fence expenditure supplement for onshore activities - restrictions on the number of accounting periods for which ERFES can be claimed
A qualifying company carrying on onshore oil-related activities may claim ERFES for up to four accounting periods. These do not need to be consecutive periods. This means that an accounting period with taxable ring fence profits within a sequence of periods showing losses does not need to count against this total of four accounting periods. Alternatively, a company may choose not to claim ERFES because it has not incurred much qualifying expenditure and does not want to use up one of its four claims.
ERFES is additional to any supplement allowed under Chapter 5 (RFES) but may only be claimed for accounting periods which fall after the 6 accounting periods for which supplement is allowed as a result of claims by the company under Chapter 5 (RFES).