OT20310 - Corporation Tax General

Sales of Oil etc Introduction ICTA 88\s493

So as to place the valuation of oil for PRT and CT on a consistent basis, in general terms the statutory market value as finally assessed to PRT is substituted in the corporation tax computations for the value of transactions as expressed in the company accounts. ICTA88\s493 follows to a large extent PRT definitions.

Market values are agreed by the Valuation Section of Oil Taxation Office. Where amendments to accounts figures are likely to be required Inspectors should encourage customers to have appropriate systems in place so as to automatically pick up PRT figures where appropriate.

Positions should be checked from time to time as part of the risk assessment process.

Inspectors should be alert to the fact that sales can arise in respect of non-PRT fields.