Cross-field relief for exploration and appraisal expenditure was abolished by FA 1993, s. 188 in respect of expenditure incurred on or after 16 March 1993, subject to two transitional provisions.

Under the first of these provisions, expenditure incurred within a two-year period beginning on 16 March 1993 is eligible for relief if it is expenditure to which the claimant (or an associated company) is committed immediately before that date.

A company is regarded as committed to expenditure before 16 March 1993 if:

(1)it has an obligation under an exploration and appraisal contract entered into before that date to incur the expenditure; or

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