From 7 August 2000.,the capital allowance already available for the demolition of oil rigs is extended to cover the costs of making them available for reuse.
The allowance is 100% of the cost. A reused oilrig which is then subsequently demolished attracts a 100% allowance for the demolition cost.
If an oilrig does not attract a 100% capital allowance under the provisions for reuse or demolition, it attracts the normal 25% capital allowance for plant and machinery.
[2000]