Section 292 Expenditure on abandonment guaranteesF7

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.

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).

So far as F2the 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.

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In this Chapter—

• “abandonment guarantee” has the same meaning as it has for the purposes of F5section 3 of OTA 1975 (see section 104 of F6FA 1991 ), and

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