Petroleum Revenue Tax Act 1980 section 2

Interest on tax and on repayments

Section 2 shortens the period before interest starts running on unpaid petroleum revenue tax and establishes the rules for when interest on repayments begins to accrue.

• The period before interest begins to accrue on unpaid petroleum revenue tax is reduced from four months to two months after the end of the chargeable period.
• Where tax is repaid — whether originally charged by assessment or paid on account — interest on the repayment runs from the later of two months after the end of the chargeable period or the date the tax was actually paid, until the repayment is made.
• The interest rules apply both to tax charged under the main collection provisions and to tax payable following expenditure allowance appeal determinations.
• Any change to the statutory interest rate made under the Taxes Management Act 1970 automatically applies to interest on unpaid tax, interest arising from appeal determinations, and interest on repayments alike.

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