OT64010 - Transferable tax history - Activation - Introduction

A decommissioning loss of a purchaser can only be set against a transferred profits amount in accordance with Part 4 of FA19\Sch15 if that amount has been ‘activated’. There are two key requirements that must be met before a transferred profits amount can be activated.

These are:

• The winning of oil from the TTH oil field must have permanently ceased.
• The total decommissioning expenditure amount in relation to that TTH asset must exceed the total net profits amount in relation to the asset.

See OT63020 for guidance on the permanent cessation of the winning of oil from a field.

See OT64030 for guidance on the total decommissioning expenditure amount.

See OT64020 for guidance on the total net profits amount.