Income Tax (Trading and Other Income) Act 2005 section 225U

Interest on repayment of APRT

Section 225U provides that interest paid to a participator on the repayment of advance petroleum revenue tax (APRT) is disregarded when calculating their income for income tax purposes.

• Applies when a participator receives interest on a repayment of advance petroleum revenue tax (APRT) under the relevant provisions of Schedule 19 to the Finance Act 1982
• The interest arises specifically where APRT that was previously paid becomes repayable to the participator
• Any such interest received by the participator must be completely disregarded when calculating their income for income tax purposes
• The effect is that this particular type of interest receipt does not increase the participator's taxable income