Corporation Tax Act 2010

[F1329JThe mixed pool of qualifying pre-commencement onshore expenditure and supplement previously allowedU.K.

(1)For the purpose of determining the amount of any pre-commencement additional supplement, a qualifying company is to be taken to have had, at all times in the pre-commencement periods of the company, a continuing mixed pool of—

(a)qualifying pre-commencement onshore expenditure,

(b)pre-commencement supplement under Chapter 5, and

(c)pre-commencement additional supplement under this Chapter.

(2)The pool is to be taken to have consisted of—

(a)the company's qualifying pre-commencement onshore expenditure, allocated to the pool for each pre-commencement period in accordance with subsection (3),

(b)the company's pre-commencement supplement allowed under Chapter 5, allocated to the pool in accordance with subsections (4) to (7), and

(c)the company's pre-commencement additional supplement allowed under this Chapter, allocated to the pool in accordance with subsection (8).

(3)To allocate qualifying pre-commencement onshore expenditure to the pool for any pre-commencement period, take the following steps—

• Step 1 Count as eligible expenditure for that period so much of the qualifying pre-commencement onshore expenditure mentioned in section 329I(1) as was incurred in that period.

• Step 2 Find the total of all the eligible expenditure for that period (amount E).

• Step 3 If section 329K (reduction in respect of disposal receipts under CAA 2001) applies, reduce amount E in accordance with that section.

• Step 4 If section 329L (reduction in respect of unrelieved group ring fence profits) applies, reduce (or, as the case may be, further reduce) amount E in accordance with that section. And so much of amount E as remains after making those reductions is to be taken to have been added to the pool in that period.

(4)If any pre-commencement supplement is allowed on a claim under Chapter 5 in respect of a pre-commencement period, the appropriate proportion of that supplement is to be taken to have been added to the pool in that period.

(5)“The appropriate proportion” means—

(a)if, before the end of the pre-commencement period, the company has incurred qualifying pre-commencement expenditure (within the meaning of section 312) on offshore oil-related activities, such proportion of the pre-commencement supplement under Chapter 5 as it is just and reasonable to attribute (directly or indirectly) to the company's qualifying pre-commencement onshore expenditure, and

(b)in any other case, 100%.

(6)In the case of a straddling period—

(a)the appropriate proportion of the pre-commencement supplement allowed on a claim under Chapter 5 in respect of the period is apportioned between so much of that period as falls before 5 December 2013 and so much of it as falls on or after that date, on the basis of the number of days in each part, and

(b)only so much of the appropriate proportion of the supplement as is apportioned to the later period is taken to have been added to the pool under subsection (4).

(7)But if the basis of the apportionment in subsection (6)(a) would work unjustly or unreasonably in the company's case, the company may elect for the apportionment to be made on another basis that is just and reasonable and specified in the election.

(8)If any pre-commencement additional supplement is allowed on a claim under this Chapter in respect of a pre-commencement period, the amount of that supplement is to be taken to have been added to the pool in that period.]