Corporation Tax Act 2010 section 342

Introduction to sections 343 and 344

Section 342 sets out four conditions that must be met before sections 343 and 344 can apply, dealing with the situation where a company's equity share in a new oil field changes during an accounting period.

• This section applies when a company holds an equity share in a new oil field and that share changes partway through an accounting period.
• Four conditions must all be satisfied before the rules in sections 343 and 344 come into play.
• The purpose is to ensure that where a company's interest in a new oil field is not constant throughout the period, appropriate adjustments can be made.
• Sections 343 and 344 contain the detailed rules for how to handle the tax consequences of such a change in equity share.