Section 298: Reimbursement by defaulter in respect of certain abandonment expenditure
1014.This section applies where a defaulting participator reimburses another participator who has met the defaulter’s liability for decommissioning expenditure. It is based on section 65 of FA 1991.
1015.The corresponding rule for income tax is section 225T of ITTOIA (inserted by Schedule 1 to TIOPA).
1016.Relief against ring fence profits is given to the defaulter, and the other participator is treated as receiving additional ring fence income.
1017.The time limit in subsection (5) was amended from six years to four years by paragraph 27 of Schedule 39 to FA 2008. This change takes effect by Order from 1 April 2010 (see article 2(2) of the Finance Act 2008, Schedule 39 (Appointed Day, Transitional Provisions and Savings) Order 2009 (SI 2009/403)).
