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The cross field allowance (CFA) rules in FA87\S65 and FA87\SCH14 were introduced in 1987 to give oil companies a financial incentive to develop smaller second generation fields by allowing a measure of relief for expenditure incurred in such developments (‘a relevant new field� or ‘field of origin�) against income from larger, more mature fields (‘receiving field�). The relief is one of the exceptions to the general principle that PRT is a field-based tax - see OT16250, Unrelievable Field Losses, for the other exception.

The detail of how the relief works is covered in OT13040

Procedural rules are covered in OT13060

Relevant new field, FA87\SCH14\PARAS8-9

‘A relevant new field�, i.e. a field that is eligible to be a CFA donor is broadly a seaward, non- Southern Gas Basin field of which no part was given development consent either before 17 March 1987 or after 15 March 1993.