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HMRC internal manual

Oil Taxation Manual

From
HM Revenue & Customs
Updated
, see all updates

The taxation of the UK oil industry: an overview: interaction between the elements of the fiscal regime

PRT, RFCT and SC interact with each other in the following ways.

  • PRT is deductible in computing profits for RFCT and SC
  • SC is charged on the profits for RFCT, but without any deduction for finance costs

The regime which applies to profits arising from any particular oil field depends on the date on which the field received development consent.

  • Fields which received development consent before 16 March 1993 are subject to PRT, RFCT and SC
  • Fields which received development consent on or after 16 March 1993 are subject to RFCT and SC.