Corporation Tax Act 2010 section 287A

Restriction where debits or credits relate to decommissioning security settlement

Section 287A prevents loan relationship debits and credits from being recognised for corporation tax purposes where the underlying loan relationship relates to property held within a decommissioning security settlement connected to North Sea oil and gas abandonment obligations.

• No loan relationship debits or credits may be brought into account to the extent that the loan relationship relates to property held in a decommissioning security settlement
• A decommissioning security settlement is a trust or arrangement whose sole or main purpose is to provide security for obligations under an approved abandonment programme
• An abandonment programme is one approved (including as revised) under Part 4 of the Petroleum Act 1998, which governs the decommissioning of offshore oil and gas installations
• The definition of "security" follows that used in section 38A of the Petroleum Act 1998