Oil Taxation Act 1975 section 16

Interest on repayment of Petroleum Revenue Tax

Section 16 establishes the rules for paying interest to participators when Petroleum Revenue Tax is repaid to them, including when interest starts to accrue and how it is calculated.

• When HMRC repays Petroleum Revenue Tax to a participator, interest is payable on the amount repaid, running from the date the tax was originally paid (or became due) to the date of the repayment order.
• If the repayment arises because of a Schedule 5 or Schedule 6 determination or assessment, interest runs from the later of the original payment date or the date the relevant return was made.
• Interest paid on repayments of Petroleum Revenue Tax is not subject to income tax or corporation tax — it is received tax-free by the participator.
• The Treasury sets the applicable interest rate by statutory instrument, and different rates may apply to different periods within the overall interest calculation.