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8.1.1. Ring Fence Profits

Companies with income and gains from oil extraction activities or oil rights in the UK and the UK Continental Shelf are subject to the ring fence profits rate.  The small profits rate of tax is 19% and the ring fence fraction is 11/400 for the financial year beginning 1 April 2014, and the main rate is 30%.

These activities attract 100% capital allowances on most capital expenditure.  A supplementary tax charge of 32% applies to adjusted ring fence profits in addition to the normal corporation tax.