Income Tax (Trading and Other Income) Act 2005 section 225P

Payment under abandonment guarantee not immediately applied

Section 225P dealt with the tax treatment of payments received under an abandonment guarantee that were not immediately applied towards abandonment expenditure, but this section has been removed from the legislation.

• Section 225P addressed situations where a payment received under an abandonment guarantee was not immediately used for its intended purpose of funding oil or gas field abandonment costs.
• The section was introduced via the Taxation (International and Other Provisions) Act 2010 as part of a suite of provisions (sections 225O to 225Q) governing abandonment guarantees in the oil and gas sector.
• The entire section was omitted from the legislation by Finance Act 2013, Schedule 31, paragraph 6(3), taking effect from 17 July 2013.
• As this provision has been repealed, it no longer has any practical application for current tax periods, though it may remain relevant for enquiries or assessments relating to periods before its removal.

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