Oil Taxation Act 1975 Schedule 2 paragraph 16

Interest on tax

Paragraph 16 of Schedule 2 sets out the rules for paying interest on petroleum revenue tax (PRT) that becomes repayable to the taxpayer.

• When a PRT assessment or a payment on account is found to be repayable, the repayable amount carries interest at the statutory rate set under section 178 of the Finance Act 1989.
• Interest runs from the later of two dates: either two months after the end of the chargeable period to which the assessment relates, or the date the tax was actually paid.
• Interest continues to accrue until the date on which HMRC issues the repayment order.
• This rule is subject to the provisions of paragraph 17 of Schedule 2, which modifies interest calculations in certain circumstances involving amended assessments.