OT13925 - PRT: non-field expenditure - non-arm's length expenditure

OTA75\S5(5) applies the provisions of OTA75\SCH4\PARA2 (see OT14610) to expenditure incurred on abortive exploration. Effectively, if the claimant pays £100 to an associate for something that cost the associate only £80, the claimant’s allowable expenditure is reduced to £80.

OTA75\S5(5) is applied to exploration and appraisal expenditure by virtue of OTA75\S5A(4) and to research expenditure by virtue of OTA75\S5B(8).