SECTION PART I.- PRELIMINARY 1. Short title 2 ... - Lexadin

such disposal shall be treated as income of the company of its
first accounting period for the purposes of subsection (1)(a) of
section 9 of this Act.
Provisions
relating to
qualifying
petroleum
expenditure
1973 No. 15
2. (1) For the purposes of this Schedule where –
(a) expenditure has been incurred before its first accounting
period and such expenditure would have been treated as such
qualifying petroleum expenditure (ascertained without the
qualification contained in the proviso in the interpretation of
qualifying expenditure) if it had been incurred in that first
accounting period; and
(b) such expenditure has not brought into existence an asset,
then such expenditure (ascertained in the case of sub-paragraph (1)(a)
of this paragraph without such qualification) shall be deemed to have
brought into existence an asset owned by the company incurring the
expenditure and in use for the purposes of such petroleum operations.
(2) For the purposes of this Schedule, an asset in respect of which
qualifying drilling expenditure has been incurred by any company for
the purposes of petroleum operations carried on by it during any
accounting period of the company, and which has not been disposed of,
shall be deemed not to cease to be used for the purposes of such
operations so long as such company continues to carry on such
operations.
(3) So much of any qualifying petroleum expenditure incurred on the
acquisition of rights in or over petroleum deposits and on the purchase
of information relating to the existence and extent of such deposits as
exceeds the total of the original cost of acquisition of such rights and of
the cost of searching for, discovering and testing such deposits prior to
the purchase of such information shall be left out of account for the
purposes of this Schedule:
Provided that where the company which originally incurred such
costs was a company which carried on a trade or business
consisting, as to the whole or part thereof, in the acquisition of
such rights or information with a view to the assignment or sale
thereof, the price paid on such assignment or sale shall be
substituted for the aforementioned costs.
Owner and
meaning of
relevant
interest.
3. (1) For the purposes of this Schedule, where an asset consists of a
building, structure or works, the owner thereof shall be taken to be the
of owner of the relevant interest in such building structure or works
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