Corporation Tax Act 2010 section 270

Overview of Part

Section 270 provides an overview of Part 8 of the Corporation Tax Act 2010, which deals with the corporation tax treatment of oil activities and should be read alongside the Energy (Oil and Gas) Profits Levy Act 2022.

• Part 8 covers how corporation tax applies to oil activities, including basic definitions, the treatment of oil-related activities as a separate trade, and the calculation of oil profits.
• A ring fence expenditure supplement is available, and a supplementary charge applies to ring fence trades, with allowances that can reduce this charge for expenditure on qualifying oil fields, onshore activities, and cluster areas.
• The Energy (Oil and Gas) Profits Levy Act 2022 imposes an additional tax on ring fence profits and must be read alongside these provisions.
• Key terms such as "oil-related activities" and "ring fence trade" are defined in Chapter 2 of Part 8.