CA23157 - PMA: FYA: Expenditure on North Sea oil ring-fence plant and machinery

CAA01/S45F

Capital expenditure can qualify for FYAs if incurred from 17 April 2002 by a company wholly for the purpose of a trade of extraction of oil or gas in the UK or UK Continental Shelf (a "ring-fence" trade) which is subject to the supplementary charge for ring fence trades. The rate of FYA is 100% for general plant and machinery, while expenditure on plant and machinery which are long- life assets can qualify for 24% FYAs. There are also special 100% FYAs for mineral extraction under the code for Mineral Extraction Allowances ( CA50000).