PRT: allowable losses - unrelievable field loss: procedures
The procedure for claiming an unrelievable field loss (UFL) is set out in OTA75\Sch8\Para4 and the detailed rules of OTA75\Sch5 as applied to OTA75\Sch7 are adopted for this purpose (OTA75\Sch8\Para4(3)), see OT13775. Once the Board has issued the Notice referred to at OT16050 and the Responsible Person accepts and notifies the participators accordingly, the participators can then claim the relief attributable to each of them against the assessable profits from any other field in which they are a participator. Such claims should be made in writing to LB Oil & Gas specifying the surrendering and claiming fields.
Under OTA75\Sch5\Para9 the Board has the power to vary a decision on a claim, see OT04750. A Variation reducing the amount of expenditure allowed on a claim may lead to a reduction of an allowable loss in a particular chargeable period. If the allowable loss has given rise to a UFL claimed in another field, that UFL will be excessive and likewise will need to be varied.
FA95\S147 removed the time limit on claims. From 1 May 1995 claims can be made at any time after the date of the decision that the winning of oil has permanently ceased (OTA75\Sch8\Para4(2)).
Error or Mistake
An error or mistake in a participator’s claim may be rectified by the submission of a supplementary claim (OTA75\Sch8\Para4(2)).
Tax Specialist Responsibility
Since only the qualifying date (see OT13825) need be checked from the claimant’s file, claims are dealt with by the Tax Specialist responsible for the participator to whom the loss arose.