s 6 Qualifying E&A expenditure
(1) For the purposes of this Schedule “ qualifying E&A expenditure ”is any expenditure as respects which the following conditions are satisfied. (2) Condition 1 is that the expenditure is incurred on or after 1st January 2004. (3) Condition 2 is that, for the purposes of Part 6 of the Capital Allowances Act, the expenditure is qualifying expenditure incurred on research and development consisting of oil and gas exploration and appraisal (see section 437(2)(b) of that Act). (4) Condition 3 is that an allowance under section 441 of that Act is claimed in respect of the expenditure. (5) Condition 4 is that the expenditure is incurred in the course of oil extraction activities. (6) Condition 5 is that— (a) those oil extraction activities are comprised in a ring fence trade, or (b) after incurring the expenditure, the person incurring it sets up and commences a ring fence trade connected with the research and development.