OT22005 - Interest and Financing: Summary of the Statutory Provisions

CTA10\S286

The aim of CTA10\S286 is to allow a deduction for interest against ring fence profits only if the money borrowed is used to meet expenditure incurred in carrying on oil extraction activities or in acquiring oil rights other than from a connected person, or is appropriated to meet such expenditure. These restrictions apply whether the borrowing is from an associate or not. The section is applicable only to a company with ring fence profits.