Corporation Tax Act 2010 section 299

Reimbursement by defaulter in respect of certain abandonment expenditure

Section 299 allows a participator in an oil field to deduct petroleum revenue tax (PRT) already paid from their income when calculating corporation tax on oil extraction activities.

• A participator in an oil field who has paid PRT for a chargeable period may deduct that amount when calculating corporation tax on income from oil extraction activities or oil rights.
• The deduction is applied in the relevant accounting period, which is normally the accounting period in which the PRT chargeable period ends.
• If the PRT chargeable period ends after the company has ceased its oil extraction trade or left the charge to corporation tax on that trade, the deduction falls into the accounting period in which the cessation occurred.
• All necessary adjustments to corporation tax assessments must be made to give effect to the deduction.