Oil Taxation Act 1975 section Sch 5 para 7

Appeals

Schedule 5, paragraph 7 sets out what happens when a tribunal determines that disputed expenditure is allowable following an appeal against HMRC's decision on an expenditure claim.

• Where a tribunal finds that a disputed amount (or part of it) qualifies as allowable expenditure under sections 3 or 4 of the Act, or qualifies for supplement under section 2(9)(b)(ii), the remaining provisions of the paragraph apply.
• The amount found to be allowable is treated as having been allowed on the original claim, with an effective date being the date the notice of appeal was given.
• This backdating rule is subject to paragraph 8(2), which may modify the treatment in certain circumstances.
• All necessary adjustments must be made to profit computations under section 2, and to any related tax assessments or determinations, to reflect the tribunal's decision.