SCHEDULES

Section 89

SCHEDULE 43U.K.PRT: abolition of provisional expenditure allowance

InterpretationU.K.

1U.K.In this Schedule—

• “future chargeable period” means a chargeable period beginning after 30 June 2009;

• “provisional expenditure allowance” means an amount calculated under section 2(9)(a) of OTA 1975.

Abolition of allowanceU.K.

2U.K.No provisional expenditure allowance is to be calculated in respect of a future chargeable period.

Amendments consequential on abolitionU.K.

3(1)Section 2 of OTA 1975 (assessable profits and allowable losses) is amended as follows.U.K.

(2)For subsection (8) substitute—

“(8)The amount (if any) to be debited or credited to the participator for the period in respect of expenditure is the sum of the amounts mentioned in subsection (9) below.”

(3)Omit subsections (9)(a), (10) and (11).

(4)In Schedule 17 to FA 1980 (transfers of interests in oil fields), omit paragraph 11 (and the heading before it).

(5)This paragraph has effect in relation to future chargeable periods.

(6)But this paragraph is subject to paragraph 4.

SavingsU.K.

4(1)This paragraph applies if provisional expenditure allowance has been calculated in respect of a pre-abolition chargeable period (“the relevant allowance”).U.K.

(2)The saved provisions continue to have effect in future chargeable periods in relation to the relevant allowance and the relevant participator as if those provisions had not been amended by paragraph 3.

(3)In this paragraph—

• “pre-abolition chargeable period” means a chargeable period that begins before 30 June 2009;

• “relevant participator” means the participator in respect of which the relevant allowance has been calculated;

• “the saved provisions” means—

  (a)

  section 2(8) and (10) of OTA 1975, and

  (b)

  paragraph 11 of Schedule 17 to FA 1980.