OT00030 - The Taxation of the UK Oil Industry: An Overview: Interaction between the elements of the Fiscal Regime

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

• Any royalty paid in respect of a field is deducted in computing PRT profits and profits for RFCT and SC.
• 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 any particular oil field depends on the date on which it received development consent.

• Fields which received development consent before 1 April 1982 were subject to royalty (until its abolition from 31 December 2002), PRT, RFCT and, from 17 April 2002, SC.
• Fields which received development consent before 16 March 1993 are subject to PRT, RFCT and, from 17 April 2002, SC
• Fields which received development consent on or after 16 March 1993 are subject to RFCT and, from 17 April 2002, SC.