OT66060 - Transferable tax history - TTH allocation on a loss carry back - TTH reduction amount
In an accounting period after the first loss-making period, in which the net profit amount attributable to the TTH asset for that period exceeds the relevant proportion of the decommissioning expenditure attributable to the TTH oil field, part of the TTH that was previously activated must be ‘de-activated’. The amount of the excess is the amount that must be de-activated. This is the TTH reduction amount
If the TTH reduction amount is greater than the previously activated amount, then the Total activated TTH amount for the period is nil. However, the excess of the TTH reduction amount over the previously activated amount must be taken into account in subsequent accounting periods before further TTH can be activated.