Where, after the winning of oil from a taxable field has permanently ceased, there is a loss which cannot be relieved against profits in that field, the participator may make a claim to deduct that loss as expenditure in another field of his choice (OTA 1975, s. 6, Sch. 8). Losses in non-taxable fields are not eligible for relief.

The responsible person must first give notice to the Board that the winning of oil has ceased (OTA 1975, Sch. 8, para. 1: such notice may be given by electronic means; see ¶799-675). If satisfied, the Board notifies the responsible person accordingly. If agreement cannot be reached, the matter is referred to the special commissioners.

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