(1)This section applies if a participator in an oil field has paid any petroleum revenue tax with which the participator was chargeable for a chargeable period.
(2)In calculating for corporation tax the amount of the participator's income arising from oil extraction activities or oil rights in the relevant accounting period, there is to be deducted an amount equal to that petroleum revenue tax.
(3)There are to be made all such adjustments of assessments to corporation tax as are required in order to give effect to subsection (2).
(4)In this section “the relevant accounting period”, in relation to any petroleum revenue tax paid by a company, means—
(a)the accounting period of the company in or at the end of which the chargeable period for which that tax was charged ends, or
(b)if that chargeable period ends after the accounting period of the company in or at the end of which the company—
(i)ceases to carry on the trade giving rise to the income referred to above, or
(ii)ceases to be within the charge to corporation tax in respect of the trade,
that accounting period.