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HMRC internal manual

Oil Taxation Manual

PRT: administration: payment provisions - instalments


Six monthly instalments for each chargeable period based on prior period liabilities, FA82\SCH19\PARA2

In respect of each chargeable period six instalments of PRT at monthly intervals are required, beginning two months into the chargeable period itself. So the first instalment for each period is due respectively on 28 February (30 June chargeable period) and on 31 August (31 December chargeable period).

Each instalment is calculated as one-eighth of the payment on account for the previous chargeable period. So if a company’s payment on account for the period ended 30 June 2008 is 100, it will (ignoring the effect of previous instalments) make that payment on 31 August, and on the same day pay 12.5 as an instalment towards its payment on account for the period ended 31 December 2008. Thereafter it will pay 12.5 at the end of each of each of the following September, October, November, December and January.

Withholding instalment payments

If in any month a participator makes no delivery of oil or relevant appropriation of oil won from a field he may give notice and withhold the instalment otherwise due for the field in the following month, FA82\SCH19\PARA3. Notice must be given to LB Oil & Gas before the end of the following month. However, for chargeable periods ending on or after 31st December 1999, instalments cannot be withheld if chargeable tariff receipts are received or receivable by the participator in the relevant month, FA82\SCH19\PARA3(1A).

Exceptionally, by virtue of an ESC, notice may also be given and instalments withheld in catastrophic circumstances, despite the fact that there has been a delivery or appropriation (see Appendix 1 paragraph 5 at OT19250).


See OT04270 in relation to interest due on unpaid instalments


Due to the zero-rating of PRT, participators no longer have a PRT tax liability. As a result, the tax liability instalment section of PRT 6 no longer needs to be completed from 23 November 2016.