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HMRC internal manual

Oil Taxation Manual

PRT: administration: payment provisions - payment on account

PRTA80\S1 and PRTA80\SCH

Although PRT is due not earlier than six months after the end of the chargeable period to which it relates, a payment on account in respect of it must be made two months after the end of the chargeable period. Any PRT ultimately assessed but not paid at that time carries interest. If the payment on account exceeds the tax charged, the excess (plus interest) has to be repaid to the participator.

The amount of the payment on account is determined according to PRTA80\SCH as follows:

  • the amounts returned as sales, tariffs, and disposal receipts are treated as accepted
  • any provisional allowance is ignored
  • expenditure previously claimed under OTA75\Schedules 5,6 and 7 but, in respect of which, the Board have not notified their decision
  • Losses under OTA75\S7(1) and oil allowance, OTA75\S8, are included
  • Safeguard relief is calculated but expenditure which would be excluded under OTA75\S9(2)(a)(ii) is not taken to exclude expenditure deemed to be qualifying under PRTA80\SCH(4).
  • A loss claimed under Schedules 8 but in respect of which the Board have not notified their decision

Expenditure and losses cannot be taken into account in relation to more than one field or more than one chargeable period.

However, as PRT has been permanently zero-rated, no field will need to make any PRT payments on account. As a result, the ‘calculation of amounts payable/repayable’ does not need to be completed on the PRT 6 form (see OT04100).