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

Introduction to section 225S

Section 225R sets out the conditions that must be met before relief under section 225S can apply, and defines key terms used in connection with abandonment expenditure borne by a participator on behalf of a defaulter in an oil field.

• Section 225S applies where paragraph 2A of Schedule 5 to OTA 1975 is in point and a default payment is attributed (or could be attributed on claim) to the contributing participator
• The attribution condition is treated as met even where the contributing participator is or was involved in a non-taxable oil field under Part 3 of FA 1993
• "Additional abandonment expenditure" means the amount attributed (or that would be attributed) to the contributing participator, whether that is all or only part of the default payment
• The terms "default payment", "the defaulter" and "contributing participator" take their meanings from paragraph 2A of Schedule 5 to OTA 1975