Section 292 — Corporation Tax Act 2010: Expenditure on abandonment guarantees

Expenditure on abandonment guarantees 292 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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.