292Expenditure on and under abandonment guarantees
(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.
(2)So far as that expenditure is so allowable, it is to be allowed as a deduction in calculating the participator’s ring fence income.
(3)Subsection (4) applies if a payment is made by the guarantor under an abandonment guarantee.
(4)So far as any expenditure for which the relevant participator is liable is met, directly or indirectly, out of the payment, the expenditure is not to be regarded for corporation tax purposes as having been incurred by the relevant participator or any other participator in the oil field concerned.
(5)See also section 294 (payment under abandonment guarantee not immediately applied).
(6)In this Chapter—
“abandonment guarantee” has the same meaning as it has for the purposes of section 105 of FA 1991 (see section 104 of that Act), and
“the guarantor” and “the relevant participator” have the same meaning as in section 104 of that Act.