OT04740 | PRT: administration: informal claims

There is no time limit for submitting claims under OTA75\SCH7 (OT13775). There may therefore be a considerable gap between the time expenditure is incurred and the time when the expenditure is claimed. This can cause difficulties in accessing information that may be needed to comply with LB Oil & Gas enquiries. To provide companies with as much certainty as possible and to assist in the earlier settlement of any enquiries LB Oil & Gas operates arrangements for the submission and consideration of ‘informal claims’. Prior to the introduction of OTA75\S9A (OT17750) the informal claim procedures applied only to expenditure claimable under Schedule 7 (but see below with regard to the special rules relating to research expenditure).

OTA75\S9A prevents participators obtaining additional relief by deferring claims for operating expenditure during safeguard. The provision applies to all Schedule 5 and 6 claims for ‘operating expenditure’ incurred on or after 21 March 2000. As a result of this legislation companies may submit a claim for only part of the expenditure incurred in a safeguard period and defer claiming the balance. It may be some time before that expenditure is claimed and, as with Schedule 7 claims, this can cause difficulties in accessing information and uncertainty as to whether the deferred expenditure will be allowable when claimed. LB Oil & Gas recognises the mutual benefit to both companies and LB Oil & Gas of considering all of the expenditure incurred in a period at the same time. The informal claim procedures therefore also apply to expenditure claimable under Schedule 5 or Schedule 6 incurred in ‘safeguard’ periods ended after 1 January 2000.