Petroleum Revenue Tax (PRT) is a tax on the profits from oil and gas production in the UK. This tax only applies to ‘taxable fields’ that were approved before 16th March 1993.
Effect of PRT on your company
From 1st January 2016 PRT is permanently zero-rated however not completely abolished. This is because companies still require access to their tax history regarding trading losses and decommissioning costs. Due to this zero-rating, taxable oil fields can now become non-taxable if the field has been opted out of the regime.
The effect of this zero rating will result in a marginal tax rate of 40% for both PRT and non-PRT paying oil and gas fields.
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