OT28400 - Decommissioning and Abandonment: Expenditure on and under Abandonment Guarantees

CTA10\S292

CTA10\S292(1) provides that where expenditure on or under an Abandonment Guarantee (OT28410) qualifies for relief for PRT purposes (OTA75\S31(1)(hh)) it also qualifies as a deduction in computing ring fence income (see OT10300)

No relief is given to a participator in respect of any expenditure met directly or indirectly by a guarantor (CTA10\S292(3).

Where payments under such a guarantee are invested with other funds rather than being immediately applied, there is provision for any necessary apportionments of expenditure to be made on a just and reasonable basis (CTA10\S294(2).