Oil Taxation Act 1975 section 2B

Claim periods and claims

Section 2B sets out the conditions that must be satisfied before a contributing participator can be allocated a share of a defaulter's abandonment expenditure under the oil field relief provisions.

• All three conditions must be met before any amount of a defaulter's abandonment expenditure can be attributed to a contributing participator.
• The contributing participator must not be connected with the defaulter, as determined by the Corporation Tax Act 2010 rules on connected persons.
• The defaulter must still hold an interest in the relevant oil field at the end of the claim period, and that interest must be one that counts when calculating shares of the abandonment expenditure.
• All relevant participators — meaning each current participator other than the defaulter, plus any former participator who has made a default payment — must have taken all reasonable legal steps to recover the defaulter's liability and to enforce any guarantee or security provided against it.