What must a participator do when filing a PRT return under section 1 of the Petroleum Revenue Tax Act 1980?

Every participator in an oil field must deliver a prescribed statement to HMRC alongside their chargeable period return, showing whether PRT is due on account and the amount payable. They must also pay that amount reduced by any advance PRT (APRT) credit for the relevant period and field as defined in section 139(4) of the Finance Act 1982.

What happens if the payment on account exceeds the final PRT assessment?

If the payment on account exceeds the PRT ultimately charged in the formal assessment, after deducting the APRT credit that was offset against the amount shown in the statement, HMRC must repay the excess to the participator. The payment on account is credited against the final tax charged for the same chargeable period and oil field.

How does an appeal against a PRT assessment affect the repayment of overpaid tax on account?

When a participator appeals against an assessment, any repayment of excess tax on account is calculated on a restricted basis. The tax charged is treated as limited to the amount the participator cannot withhold pending the appeal, preventing HMRC from repaying sums that may ultimately prove due once the appeal is resolved.

Can Treasury certificates of tax deposit be used to make PRT payments on account?

Yes, Treasury certificates of tax deposit issued under section 12 of the National Loans Act 1968, on terms published on or before 14 May 1979, may be used for payments on account. The published terms apply with necessary modifications, and the tax is treated as due two months after the end of the relevant chargeable period.

Petroleum Revenue Tax Act 1980 section 1

Payments on account of tax

Section 1 establishes the requirement for participators in oil fields to make payments on account of Petroleum Revenue Tax (PRT) when they submit their periodic returns, and sets out how those payments interact with the final tax assessment.

Each participator in an oil field must deliver a statement to HMRC alongside their chargeable period return, showing the amount of PRT payable on account for that period, and must pay that amount less any advance PRT (APRT) credit.
The payment on account is treated as a part-payment towards the final PRT assessment for that chargeable period; if the payment on account exceeds the final tax charged (after deducting the APRT credit), the excess is repaid to the participator.
The same penalties that apply for failing to submit a PRT return also apply to a failure to deliver the payment-on-account statement.
Where a participator appeals against an assessment, any repayment of overpaid tax on account is calculated as though the tax charged were limited to the amount the participator cannot withhold pending the appeal; and Treasury certificates of tax deposit may be used to make payments on account.

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