Section 2B — Finance Act 2008

2B 1 No amount is to be attributed to a contributing participator under paragraph 2A(2) unless the following conditions are all met.

2 The first condition is that the contributing participator is not connected with the defaulter, applying section 839 of the Taxes Act (connected persons) for the purposes of this sub-paragraph.

3 The second condition is that, at the end of the claim period for which the claim is made, the defaulter still has an interest in the relevant oil field which, under paragraph 2(4)(b), falls to be taken into account in determining the shares in the abandonment expenditure.

4 The third condition is that the relevant participators have taken all reasonable steps by way of legal remedy—

a to secure that the defaulter meets the whole of the liability referred to in paragraph 2A(1)(a),

and b to enforce any guarantee or other security provided in respect of that liability.

5 In sub-paragraph (4) “ relevant participators ” means—

a each current participator (other than the defaulter),

and b each former participator who makes a default payment in respect of the defaulter's default.