Finance Act 2013 (c. 29)

PART 2 U.K. Oil

Decommissioning security settlements U.K.

87 Loan relationships arising from decommissioning security settlements U.K.

(1) In Part 8 of CTA 2010 (oil activities), after section 287 insert—

“287A Restriction where debits or credits relate to decommissioning security settlement

(1) No debits or credits are to be brought into account for the purposes of Part 5 of CTA 2009 (loan relationships) in respect of a company's loan relationship so far as the loan relationship is in respect of property comprised in a decommissioning security settlement.

(2) For the purposes of this section a settlement is a “decommissioning security settlement” if the sole or main purpose of the settlement is to provide security for the performance of obligations under an abandonment programme.

(3) In subsection (2)—

• “abandonment programme” means an abandonment programme approved under Part 4 of the Petroleum Act 1998 (including such a programme as revised), and

• “security” has the same meaning as in section 38A of that Act.”

(2) In section 464 of CTA 2009 (priority of Part 5 for corporation tax purposes), in subsection (3)(e), for “and 287” substitute “ to 287A ”.

(3) The amendments made by this section have effect in relation to accounting periods beginning on or after the day on which this Act is passed.