OT27040 - Abandonment and Decommissioning

Expenditure on and under Abandonment Guarantees

FA91\s62 provides that where expenditure on or under an Abandonment Guarantee ( OT27043) qualifies for relief for PRT purposes (OTA 75\s31(1)(hh)) it also qualifies as a deduction in computing ring fence income.

No relief is given to a participator in respect of any expenditure met directly or indirectly by a guarantor.

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.