Who is responsible for the care and management of Petroleum Revenue Tax under the Oil Taxation Act 1975?

Under Schedule 2 paragraph 1 of the Oil Taxation Act 1975, Petroleum Revenue Tax falls under the care and management of the Board, now Her Majesty's Revenue and Customs (HMRC). PRT does not have its own standalone administrative rules but instead borrows administrative machinery from the Taxes Management Act 1970 through this provision.

How are Taxes Management Act 1970 provisions adapted for Petroleum Revenue Tax purposes?

The borrowed provisions undergo two key adaptations. References to Part IX of the Taxes Management Act 1970 or to 'the Taxes Acts' are read as references to Part I of the Oil Taxation Act 1975. References to 'chargeable periods' for income tax purposes are replaced with PRT chargeable periods, which are six-month periods ending 30 June and 31 December.

What are PRT chargeable periods under the Oil Taxation Act 1975?

PRT chargeable periods are six-month periods ending on 30 June and 31 December each year. This differs from income tax chargeable periods, which are typically tax years running from 6 April to 5 April. When Taxes Management Act 1970 provisions refer to chargeable periods in a PRT context, the PRT six-month periods apply instead.

How does Schedule 2 paragraph 1 handle defined terms shared between the Oil Taxation Act 1975 and the Taxes Management Act 1970?

The paragraph ensures that any word or phrase with a specific defined meaning under the Oil Taxation Act 1975 carries that same meaning when it appears in any Taxes Management Act 1970 provision applied to PRT. This prevents conflicts between the two Acts over interpretation of shared terminology and maintains consistency throughout.

Oil Taxation Act 1975 Schedule 2 paragraph 1

Management of tax

Schedule 2 paragraph 1 establishes that Petroleum Revenue Tax (PRT) is managed by the Board of HMRC and sets out how certain provisions of the Taxes Management Act 1970 are adapted to apply to PRT.

PRT falls under the care and management of the Board (now HMRC).
Specified provisions of the Taxes Management Act 1970 are applied to PRT, subject to certain modifications set out in an accompanying table.
References in those borrowed provisions to general tax concepts (such as the Taxes Acts and chargeable periods) are replaced with references to the equivalent PRT concepts under the Oil Taxation Act 1975.
Any defined terms used in the Oil Taxation Act 1975 carry the same meaning when they appear in the borrowed Taxes Management Act provisions.

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