This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

Oil Taxation Manual

PRT: non-field expenditure: exploration and appraisal expenditure: licence payments


A payment (other than a royalty or other periodic payment) made to the Secretary of State under, or for the purpose of obtaining a licence, is allowable only if at the time of the claim

  • the licence has expired or has been determined or revoked, OTA75\S5A(3)(a)
  • or part of the licensed area has been surrendered, OTA75\S5A(3)(b).

In the latter instance only such proportion of the expenditure is allowable as corresponds to the area surrendered.