PART 2Oil

Decommissioning security settlements

87Loan relationships arising from decommissioning security settlements

1

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

287ARestriction 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.