The Investment Allowance and Cluster Area Allowance (Investment Expenditure) (Amendment) Regulations, SI 2024/395, amend the principal 2017 regulations (SI 2017/292) . The 2017 regulations extended the definition of investment expenditure which qualifies for the supplementary charge investment allowance and cluster area allowance to certain operating and leasing expenditure. Under the original legislation in FA 2015, the allowances had been available for capital expenditure only.
The 2017 regulations were drafted so that some onshore oil and gas facilities fell outside the scope of the operating expenditure that qualified for the allowances, which was not the intention. These new regulations update the definitions of ‘facility’ and ‘upstream petroleum infrastructure’ in the 2017 regulations, to bring UK facilities within scope of the allowances.
The Investment Allowance and Cluster Area Allowance (Investment Expenditure) (Amendment) Regulations, SI 2024/395, amend the principal 2017 regulations (SI 2017/292) . The 2017 regulations extended the definition of investment expenditure which qualifies for the supplementary charge investment allowance and cluster area allowance to certain operating and leasing expenditure. Under the original legislation in FA 2015, the allowances had been available for capital expenditure only.
The 2017 regulations were drafted so that some onshore oil and gas facilities fell outside the scope of the operating expenditure that qualified for the allowances, which was not the intention. These new regulations update the definitions of ‘facility’ and ‘upstream petroleum infrastructure’ in the 2017 regulations, to bring UK facilities within scope of the allowances.
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