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OT00030 | The taxation of the UK oil industry: an overview: interaction between the permanent elements of the fiscal regime

From HM Revenue & Customs · Oil Taxation Manual

PRT, RFCT and SC interact with each other in the following ways.

  • PRT is deductible in computing profits for RFCT and SC

  • SC is charged on the profits for RFCT, but without any deduction for finance costs

The regime which applies to profits arising from any particular oil field depends on the date on which the field received development consent.

  • Fields which received development consent before 16 March 1993 are subject to PRT, RFCT and SC (although PRT was zero-rated from 1 January 2016).

  • Fields which received development consent on or after 16 March 1993 are subject to RFCT and SC.