SCHEDULES
SCHEDULE 15Oil activities: transferable tax history
PART 7Supplementary charge: recalculation of adjusted ring fence profits
50Recalculation: steps
1
2
The recalculated transferred adjusted ring fence profits amount for the period is the aggregate of—
3
But if the amount given by taking the steps in sub-paragraph (2) is a negative amount, the recalculated transferred adjusted ring fence profits amount is nil.
“Reduced ARFP amount”
51
1
To determine the “reduced ARFP amount” for a pre-acquisition accounting period—
a
take the activated ARFP amount for the period, and
2
This paragraph is subject to paragraph 52.
52
1
2
To determine the “reduced ARFP amount” for the pre-acquisition accounting period—
a
calculate the total of—
i
the activated ARFP amount for the period, and
ii
the ARFP uplift amount for the period (see paragraph 54),
53“Activated ARFP amount”
1
The “activated ARFP amount” for a pre-acquisition accounting period is the amount equal to—
2
3
Sub-paragraph (4) applies if, in respect of an earlier loss period—
a
b
a corresponding repayment is determined under paragraph 26(2) (an “earlier repayment”).
4
The amount of the transferred adjusted ring fence profits for the pre-acquisition accounting period is treated, for the purposes of sub-paragraph (1), as being reduced by an amount equal to the total of the activated ARFP amounts for that period for the purposes of each earlier repayment.
54“ARFP uplift amount”
The “ARFP uplift amount” for a pre-acquisition accounting period is the amount equal to—
where—
SC is the percentage specified in section 330(1) of CTA 2010 for the pre-acquisition accounting period, and
A is the amount applied, in relation to the loss period, in accordance with paragraph 25(2)(b) or (3)(b) for the pre-acquisition accounting period.
55“Adjusted finance cost amount”
The “adjusted finance cost amount” for a loss period is the amount equal to—
where—
A is the amount applied, in relation to the loss period, in accordance with paragraph 25(2)(b) or (3)(b) for the pre-acquisition accounting period,
L is the amount of the decommissioning loss in the loss period (see paragraph 23(d)(i) and (ii)), and
FC is the lower of—
- a
the amount of the financing costs brought into account under section 330(3) of CTA 2010 for the purposes of determining the purchaser’s adjusted ring fence profits for the loss period, and
- b
the amount of the purchaser’s loss in the ring fence trade for the loss period (see paragraph 23(d)(i)).
- a