SCHEDULES
SCHEDULE 44Supplementary charge: reduction for certain new oil fields
Part 4No change in equity share: activation of allowance
Activation of field allowance
9
1
An amount of the company's field allowance for the new oil field is to be activated in respect of the accounting period.
2
The amount of the field allowance to be activated is the smallest of the following amounts—
a
the relevant activation limit,
b
the company's relevant income from the field in the accounting period, and
c
the unactivated amount of the field allowance which the company holds at the beginning of the accounting period.
3
The relevant activation limit is—
where—
T is the amount of the total field allowance for the field (see paragraph 24),
E is the company's share of the equity in the field during the accounting period, and
N is the number of days in the accounting period.