What does section 13D of the Oil Taxation Act 1975 require HMRC to do?

Section 13D imposes two mandatory duties on HMRC. First, HMRC must make a decision on every claim submitted by a participator in an oil field. Second, HMRC must formally notify the participator of that decision by issuing a written notice setting out the outcome.

Does HMRC have discretion over whether to respond to a participator's petroleum revenue tax claim?

No. The use of the word 'must' in section 13D makes both obligations compulsory. HMRC does not have discretion over whether to deal with the claim or whether to communicate the outcome. Once a valid claim is submitted, HMRC is required to decide and notify.

Why is the notice of decision important for a participator?

The notice of decision provides the participator with a clear and documented response to their claim. This formal notice serves as the basis on which the participator can take further action, such as appealing to the relevant tribunal if they disagree with HMRC's decision.

What outcomes can HMRC reach when deciding a petroleum revenue tax claim?

When HMRC reviews a participator's claim, they may decide to allow it in full, allow it in part, or refuse it entirely. Whatever the outcome, HMRC must send the participator a written notice setting out the decision they have reached, ensuring full transparency.

Oil Taxation Act 1975 section 13D

Decision on claim

Section 13D requires HMRC to make a decision on a participator's claim and to notify the participator of that decision.

HMRC has a statutory duty to make a decision on every claim submitted by a participator
HMRC must formally notify the participator of their decision by issuing a notice
Both obligations — deciding and notifying — are mandatory requirements placed on HMRC
This provision ensures participators receive a clear and documented response to their claims

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