OT27041 - Abandonment and Decommissioning

Reimbursement expenditure under Abandonment Guarantees

FA91\s63 restores relief to a defaulting participator who reimburses a guarantor who has been called upon to make abandonment guarantee payments. It closely follows the equivalent PRT provision (FA91\s106).

There is a formula for restricting relief to a defaulting participator where part of the reimbursement relates to part of the guarantee payment not applied in meeting the defaulters abandonment costs.

Relief is given in computing the defaulting participator’s ring fence income.