OT28703 - Decommissioning and abandonment: decommissioning certainty: outline of the legislation

Any company that has carried on a ring fence trade, and the associates of those companies, is eligible to be party to a decommissioning relief deed (DRD).

CAA2001\S163 to CAA2001\S165 and CAA2001\S416 already provide tax relief for the costs of decommissioning. However, no current law guarantees the relief will be available in the future.

Parliament has decided to allow companies to enter into DRD’s with the Government. »Ê¹ÚÌåÓýapp company will then be able to obtain payment under the DRD if tax legislation is changed to reduce the amount of relief available in respect of decommissioning expenditure. »Ê¹ÚÌåÓýapp company may also claim under the DRD if they are required to incur expenditure as a result of another company defaulting in respect of its decommissioning liability under certain circumstances.

»Ê¹ÚÌåÓýapp relevant legislation is in:

  • FA2013\S80 to S93
  • FA2013\SCH31
  • FA2013\SCH32.

»Ê¹ÚÌåÓýapp legislation is summarised in the following pages.