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

HMRC internal manual

Oil Taxation Manual

PRT: unitisations and re-determinations - purchase of licence interests - PRT field determined and comprised in licence

Where, by virtue of a cash payment, company B acquires from company A an interest in a determined/producing field then:

  1. No relief is available in respect of the licence payment — OTA75\S3(4)(e) applies.
  2. The provisions of FA80\SCH17 apply (see OT17000).
  3. FA84\S113 (see OT13825) applies to licence interests acquired after 14 September 1983 or the end of the first chargeable period in relation to the field (qualifying date) and prohibits the allowance against such field interest of:



  1. Any abortive or exploration and appraisal expenditure incurred before the qualifying date.
  2. Any unrelievable field loss arising on another field unless the winning of oil on that field ceased on or after the qualifying date.