Section 292 | Expenditure on abandonment guarantees

(1)Subsection (2) applies if, as a result of section 3(1)(hh) of OTA 1975 (obtaining abandonment guarantee), expenditure incurred by a participator in an oil field is allowable (in whole or in part) for petroleum revenue tax purposes under section 3 of that Act.

(1A)Subsection (2) also applies if expenditure incurred by a participator in an oil field would be so allowable as a result of section 3(1)(hh) of that Act but for the fact that the oil field is a non-taxable oil field within the meaning of Part 3 of FA 1993 (see section 185 of that Act).

(2)So far as the expenditure mentioned in subsection (1) or (1A) is or would be so allowable , it is to be allowed as a deduction in calculating the participator's ring fence income.

(3)Repealed

(4)Repealed

(5)Repealed

(6)In this Chapter—

“abandonment guarantee” has the same meaning as it has for the purposes of section 3 of OTA 1975 (see section 104 of FA 1991 ), and

“the guarantor” and “the relevant participator” have the same meaning as in section 104 of that Act.