# Income Tax (Trading and Other Income) Act 2005, Section 225N: Expenditure on abandonment guarantees

Extent: E+W+S+N.I.

(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.

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Source: https://www.legislation.gov.uk/ukpga/2005/5/section/225N (the official version)
Page: https://openlegislation.uk/income-tax-trading-and-other-income-act-2005/section-225N
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.