Part VI Companies, oil, insurance etc.
Chapter II Oil and mining industries
Oil exploration and exploitation
195FF1Reimbursed expenditure
1
This section applies if—
a
expenditure is incurred by company A or company B (see section 195A) on a licence disposed of by it under a licence-consideration swap or mixed-consideration swap,
b
the expenditure is incurred before the disposal,
c
the expenditure falls within section 38(1)(b), and
d
the expenditure is reimbursed or effectively reimbursed (whether by way of adjustment of the non-licence consideration (if any) or otherwise) by the company (“the other company”) to whom the disposal is made (whether before, on or after the date of the disposal).
2
The expenditure is to be treated for the purposes of this Act as expenditure —
a
incurred by the other company on the licence immediately after the disposal, and
b
which falls within section 38(1)(b).