Corporation Tax: high pressure high temperature cluster area allowance
This Tax Information and Impact Note is about a new high pressure high temperature (HPHT) cluster area allowance.
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皇冠体育app measure will introduce a new HPHT cluster area allowance to reduce the amount of adjusted ring fence profits subject to the supplementary charge. 皇冠体育app portion of profits reduced by the allowance will be dependent on a company鈥檚 capital spend on cluster area oil and gas projects, and will be generated at 62.5% of that spend.
皇冠体育app measure will have effect from 3 December 2014 in respect of capital expenditure incurred on or after 3 December 2014 in relation to an HPHT cluster area.
A draft legislation for this measure has been published at Draft legislation: Corporation Tax - high pressure high temperature cluster area allowance.