103 Abandonment expenditure: default by participator met by former participator
Finance Act 2008 (2008 c 9) | Legislation

103  Abandonment expenditure: default by participator met by former participator

(1)     In Schedule 5 to OTA 1975 (allowance of expenditure, other than abortive exploration expenditure), for paragraph 2A substitute—

“2

(1)     This paragraph applies if—

(a)     a current participator (“the defaulter”) has defaulted on a liability under—

(i)     a relevant agreement, or

(ii)     an abandonment programme,

to make a payment towards abandonment expenditure, and

(b)     a current or former participator (“the contributing participator”) pays an amount in or towards meeting the whole or part of the default (“a default payment”).

(2)     If a claim is made under this Schedule for the allowance of the abandonment expenditure, the amount of the default payment is to be attributed to the contributing participator for the purposes of paragraphs 2(4)(b) and 3(1)(c).

(3)     But the amount attributed under sub-paragraph (2) may not exceed—

(a)     so much of the sum in default as the contributing participator is required to meet in accordance with—

(i)     the relevant agreement, or

(ii)     the abandonment programme, or

(b)     such other amount as the participator may be required to meet in accordance with a direction given under Part 4 of the Petroleum Act 1998.

(4)     Sub-paragraph

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