OT18310 - PRT: unitisations and re-determinations - negative uplift and safeguard

The quality of expenditure included in a re-determination claim, i.e. whether it qualifies for supplement, is determined as if the expenditure were incurred at the date of original occurrence, and supplement will thus be given and clawed back, post net profit period, on such a claim.

The test as to the quality of expenditure cannot be affected by a subsequent change in the shares in which the participators bear the costs as a result of the re-determination. Accordingly where the original claims have been settled, the over-invested parties, i.e. those receiving a payment and thus having a negative allocation, cannot disclaim supplement on any part of the receipt which relates to qualifying expenditure. This applies also when the participator is in safeguard.