OT15810 - PRT: Tax-Exempt Tariffing Receipts

Outline

OTA83/S6A introduced a new category of receipt; “a tax-exempt tariffing receipt” for amounts received or receivable from tax-exempt business. Tax-exempt business is tariff business under contracts entered into after 8 April 2003;

1. in connection with a new field ( OT15830) or oil won from a new field
2. in connection with an existing field ( OT15830) or oil won from an existing field as long as:

Tax-exempt tariffing receipts which are received or receivable in a chargeable period ending on or after 30 June 2004 are not regarded as tariff receipts ( OT15025) for the purposes of PRT (but see Expenditure incurred in the transitional period: restriction of tax-exempt tariffing receipts where long term asset expenditure incurred in the period 9 april 2003 to 31 December 2003 ( OT15900).

Expenditure relating to tax-exempt business is not allowable (see Tax-exempt tariffing related expenditure OT15910).