Policy paper

Draft legislation: Investment Allowance for oil and gas companies

This draft legislation explains changes to the Investment and Cluster Area allowances for oil and gas companies.

Documents

Details

Investment Allowance and Cluster Area Allowance reduce the adjusted ring fence profits of oil and gas companies which are subject to the supplementary charge by an amount equal to 62.5% of investment expenditure incurred.

In the Summer Budget 2015, the government announced that the the definition of investment expenditure would be extended for the purposes of the Investment and Cluster Area allowances.

HM Revenue and Customs is seeking comments on the draft legislation by 27 January 2016.

A tax information and impact note has also been published.

Any comments on this draft should be sent to:

Email: nicola.garrod@hmrc.gsi.gov.uk

Write to:

Nicola Garrod
HM Revenue and Customs
Room 3/63
100 Parliament Street
SW1A 2BQ

Published 16 December 2015