Oil Taxation Act 1975 section 15

Interest on repayment of petroleum revenue tax

Section 15 deals with the payment of interest by HMRC when petroleum revenue tax (PRT) is repaid to a participator, setting out when interest starts to accrue and how it is calculated.

• When HMRC repays PRT to a participator, interest is payable on the repaid amount from the date the tax was originally paid (or became due) until the date of repayment.
• Interest on PRT repayments is calculated at rates set by the Treasury through statutory instruments, and different rates may apply to different periods within the overall interest calculation.
• Interest paid on PRT repayments is not subject to income tax or corporation tax in the hands of the recipient.
• Where a repayment arises because of a change in an assessment or determination, the interest runs from the date the original overpaid amount was paid to HMRC.