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HMRC internal manual

Oil Taxation Manual

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HM Revenue & Customs
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PRT: tariff and disposal receipts - qualifying tariff receipts referable to different periods - example 1

Example 1: Calculation of TRA: Straddling Tariff Receipts

In chargeable period 1 (CP1) a participator receives £26m in respect of anticipated throughput. Receipts are allocated by reference to 2.6m metric tonnes of expected qualifying oil.

  Period Anticipated throughput (tonnes) Receipt allocated
       
  CP1 100,000 £1m
  CP2 1,000,000 £10m
  CP3 1,500,000 £15m

TRA is calculated as follows:

Complex Table

  CP1 £1m x 250,000 (maximum) £1.0m
             
        100,000    
  CP2 £10m x 250,000   £2.5m
        1,000,000    
  CP3 £15m x 250,000   £2.5m
        1,500,000    
  Total         £6.0m
  The amounts for inclusion in the assessment for CP1 are:  
     
  Straddling tariff receipt  £26m 
  TRA  £6m 
  Net chargeable  £20m