OT28010 - Decommissioning and Abandonment: Outline of the legislation
The rules which provide relief for expenditure incurred in decommissioning installations and equipment used in a ring fence trade are in CAA01\S162 to CAA01\S165. With effect from 12 March 2008 (FA08\S109) the legislation refers to this as general decommissioning expenditure, it was previously known as abandonment expenditure. This change reflects the extended scope of the relief from that date.
The rules that provide relief for decommissioning expenditure connected with the reuse of offshore infrastructure are in CAA01\S161A to CAA01\S161D. These rules were introduced in FA01.
The legislation on general decommissioning expenditure is
CAA01\S162
This gives the meaning of the term ring fence trade and treats it as a separate qualifying activity for decommissioning expenditure.
CAA01\S163
This gives the meaning of general decommissioning expenditure
CAA01\S164
This provides for a special allowance for general decommissioning expenditure incurred before the cessation of a ring fence trade.
CAA01\S165
This provides for relief for general decommissioning expenditure after the cessation of a ring fence trade within a specified period.
The legislation on reuse is
CAA01\S161A
This gives the meaning of offshore infrastructure.
CAA01\S161B
This gives the meaning of decommissioning expenditure.
CAA01\S161C
This provides for writing down allowances on expenditure related to reuse and defines conditions.
CAA01\S161D
This qualifies CAA01\S161C(2) in certain circumstances.
