(1) Subject to subsection (4), the provisions of the Tax Acts regarding allowances and charges in respect of capital expenditure shall have effect in relation to a petroleum trade as if each reference therein to machinery or plant included a reference to assets, not being machinery or plant, representing development expenditure.
(2) In relation to assets representing development expenditure, subsection (1) of section 241 of the Income Tax Act, 1967, shall, subject to subsection (3), have effect as if the reference in paragraph (b)(i) of the said subsection (1) to ‘15 per cent.’ were a reference to ‘100 per cent.’.
(3) Assets representing development expenditure shall not be treated, for the purposes of subsection (1) of section 241 of the Income Tax Act, 1967, as being in use for the purposes of a petroleum trade at the end of any chargeable period or its basis period which ends before the commencement of production of petroleum in commercial quantities from the relevant f