Oil Taxation Act 1975 section 19

Interest on repayment of Petroleum Revenue Tax

Section 19 establishes the rules for paying interest to participators when Petroleum Revenue Tax (PRT) is repaid to them by HMRC, including how the interest period is determined and the tax treatment of that interest.

• When HMRC repays PRT to a participator, interest is paid on the repaid amount from the date the tax was originally paid (or became due) until the date of repayment.
• Where a repayment arises because of a loss carried back or an adjustment to a later period, the interest runs only from the date the tax for that later period was originally paid.
• The interest rate applicable to repayments is set by the Treasury and may be varied by statutory instrument.
• Any repayment interest received is itself subject to income tax or corporation tax, but is not treated as income from oil extraction activities for PRT purposes.