Oil Taxation Act 1975 Schedule 5 paragraph 9

Appeals

Schedule 5 paragraph 9 sets out the procedure by which HMRC may correct errors in expenditure allowance decisions for oil fields, including time limits for issuing corrections and the right of appeal against such corrections.

• Where HMRC identifies that an amount was incorrectly stated in a decision on an expenditure claim, it may issue a "notice of variation" to the responsible person within the permitted period, stating what the correct amount should be.
• The standard permitted period for issuing a notice of variation is 4 years from the date the original decision was given, but this is extended to 6 years for careless inaccuracies or 20 years for deliberate inaccuracies in the responsible person's statements or declarations.
• The responsible person may appeal against a notice of variation by writing to HMRC within 30 days, stating the grounds of appeal; alternatively, the parties may reach agreement before the tribunal determines the matter, in which case the appeal is treated as abandoned.
• Once a notice of variation becomes effective — either because no appeal is lodged within the 30-day window, or because all appeal and court proceedings are exhausted — HMRC may recalculate assessable profits, allowable losses, and any related assessments or determinations as necessary.