Introduction Background Note
5.Petroleum revenue tax (PRT) was introduced by OTA 1975 and is essentially a tax on the profits from oil and gas production from the UK Continental Shelf.
6.This section reduces the rate of PRT payable by oil and gas companies operating on the UK Continental Shelf from 50% to 35% and provides a consequential reduction in the interest cap provided by Paragraph 17 of Schedule 2 to OTA 1975.
7.This reduction will help provide the right conditions for business investment to maximise the economic recovery of the UK’s oil and gas resources.