Oil Taxation Act 1975 section 15

Interest on tax

Section 15 sets out the rules for when interest begins to accrue on petroleum revenue tax that has been assessed but not yet paid, including the applicable rate and certain exceptions.

• Tax charged in an assessment for a chargeable period carries interest from two months after the end of that period until the date of payment.
• The interest rate used is the rate applicable under section 178 of the Finance Act 1989, which provides for a statutory rate set by HMRC.
• No interest may be charged for any period before 30th April 1976, reflecting the earliest date from which the regime could apply.
• Where a participator has appealed an assessment and is permitted to withhold payment of tax pending the outcome, any interest on that withheld tax may likewise be held back until the appeal is determined or abandoned.