Section 225T: Reimbursement by defaulter in respect of certain abandonment expenditure
742.This section applies where a defaulting participator reimburses another participator who has met the defaulter’s liability for decommissioning expenditure. It is based on section 65 of FA 1991.
743.Relief against ring fence income is given to the defaulter, and the other participator is treated as receiving additional ring fence income.
744.The time limit in subsection (5) was amended from six years to four years by paragraph 27 of Schedule 39 to FA 2008 from a date to be determined by order. This change takes effect from 1 April 2010 by virtue of article 2(2) of the Finance Act 2008, Schedule 39 (Appointed Day, Transitional Provision and Savings) Order 2009 (SI 2009/403) unless article 10 of that order applies. In such circumstances the transitional provision in Schedule 9 provides that the change takes effect from 1 April 2012.
745.This provision is rewritten in full for income tax. See the commentary on section 225O and Change 10 in Annex 1.