Explanatory Notes

Corporation Tax Act 2010

2010 CHAPTER 4

3 March 2010

Introduction

Part 8: Oil activities

Chapter 4: Calculation of profits
Section 299: Deduction of PRT in calculating income for corporation tax purposes

1018.This section provides that a company may deduct PRT paid as an expense in calculating profits from the ring fence trade. It is based on section 500(1), (2), and (3) of ICTA.

1019.Sections 300 and 301 set out what happens when PRT is repaid and section 302 deals with interest on PRT repayments.