Part 8Oil activities
Chapter 4Calculation of profits
Abandonment guarantees
294Payment under abandonment guarantee not immediately applied
1
This section applies if—
a
a payment made by the guarantor under an abandonment guarantee is not immediately applied in meeting any expenditure,
b
the payment is for any period invested (either specifically or together with payments made by persons other than the guarantor) so as to be represented by, or by part of, the assets of a fund or account, and
c
at a subsequent time, any expenditure for which the relevant participator is liable is met out of the assets of the fund or account.
2
The references in sections 292(4) and 293(7) to expenditure which is met, directly or indirectly, out of the payment are to be read as references to so much of the expenditure for which the relevant participator is liable as is met out of those assets of the fund or account which, at the subsequent time mentioned in subsection (1)(c), it is just and reasonable to attribute to the payment.