Oil Taxation Act 1975 Schedule 2 paragraph 2

Returns by participators

Schedule 2 paragraph 2 sets out the obligation on each participator in a taxable oil field to prepare and submit a detailed return to HMRC for every chargeable period, specifying what information must be included about oil disposals, appropriations, royalties, and nominated transactions.

• Every participator in a taxable field must submit a return within two months of the end of each chargeable period (or a longer period if allowed by HMRC), covering quantities, values, and disposal details of their share of oil won from the field.
• The return must report separately on oil sold at arm's length (showing the sale price), oil disposed of other than at arm's length or relevantly appropriated (showing market value under Schedule 3), oil delivered to the Oil and Gas Authority under a petroleum licence, and oil that remains undisposed of or undelivered at the period end.
• The return must also include royalty information — amounts payable, amounts paid, any royalties repaid, and any other periodic licence payments made to the OGA — as well as details of any exploration, appraisal, or research expenditure previously claimed, and particulars relating to nominated transactions under Finance Act 1987 Schedule 10.
• The return must be in the form prescribed by HMRC, must include a declaration that it is correct and complete, and HMRC has the power to extend the filing deadline — including granting an indefinite extension that can be ended by notice.