Corporation Tax Act 2010 section 296

Introduction to section 297

Section 296 sets out the conditions that must be met before relief under section 297 can apply, and defines key terms used in connection with relief for expenditure incurred when a participator in an oil field has to cover another participator's share of abandonment costs.

• Section 297 relief is triggered when the abandonment default rules in the Oil Taxation Act 1975 apply and a default payment is attributed (or would be attributed) to the contributing participator
• The relief conditions are still treated as met even if the contributing participator is involved in a non-taxable oil field as defined by Part 3 of the Finance Act 1993
• "Additional abandonment expenditure" means the amount of the default payment (in whole or part) that is or would be attributed to the contributing participator
• The terms "default payment", "the defaulter" and "contributing participator" carry the same meanings as in the Oil Taxation Act 1975 abandonment provisions