Capital allowances: extended ring fence expenditure supplement for onshore activities - qualifying pre-commencement onshore expenditure
Expenditure is qualifying pre-commencement onshore expenditure if the following conditions are satisfied.
- Condition A: it is incurred on or after 5 December 2013.
- Condition B: it is incurred in the course of oil extraction activities which are onshore oil-related activities.
- Condition C: it is incurred by a company with a view to carrying on a ring fence trade but before they set up and commence the trade.
- Condition D: it is
- subsequently allowable as a deduction in calculating the profits of the ring fence trade for the commencement period (OT26210), or
- relevant R&D expenditure incurred by an SME.
Such qualifying expenditure will include capital expenditure allowable under the Capital Allowances Act 2001.
For the purposes of this section ‘Relevant R&D incurred by an SME’ is as defined in CTA2010\S312(6) to (9).