Hydrocarbon Oil Duties Act 1979

13AA

• (1) If, on the delivery of kerosene for home use, it is intended to use the kerosene as fuel for an excepted machine other than an excepted machine used for heating a declaration shall be made to that effect and thereupon rebate shall be allowed at the rate for then in force under paragraph (b) of subsection (1) of section 11, instead of at the rate then in force under paragraph (c) of that subsection.

• (2) Subject to subsection (3) below, no kerosene on whose delivery for home use a rebate at the rate given by section 11(1)(c) above has been allowed shall—

• (a) be used as fuel for an excepted machine other than an excepted machine used for heating, or

• (b) be taken into the fuel supply of an excepted machine other than an excepted machine used for heating.

• (3) Subsection (2) above does not apply to any quantity of kerosene in respect of which there has been paid to the Commissioners an amount equal to duty on the same quantity of gas oil at the rate for rebated gas oil which is in force at the time of the payment.

• (4) A payment under subsection (3) above shall be made in accordance with regulations made under section 24(1) below for the purposes of this section.

• (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (6) For the purposes of this section and section 13AB below the rate for rebated gas oil which is in force at any time is the rate of duty which at that time is in force under section 6(1A) above in the case of heavy oil ... as reduced by the rate of rebate allowable at that time under section 11(1)(b) above.

• (7) Nothing in this section has the effect of allowing a rebate on bioblend or bioethanol blend.

13AB

• (1) If a person uses kerosene in contravention of section 13AA(2) above—

• (a) in respect of the quantity of kerosene used the Commissioners may assess as being excise duty due from him an amount equal to duty on the same quantity of gas oil at the rate for rebated gas oil which is in force at the time of the contravention, and they may notify him or his representative accordingly;

• (b) his use of the kerosene shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties); and

• (c) if he uses the kerosene with the relevant intent, he shall be guilty of an offence.

• (2) If a person is liable for kerosene being taken into a fuel supply ... in contravention of section 13AA(2) above—

• (a) in respect of the quantity of kerosene taken into the fuel supply the Commissioners may assess as being excise duty due from him an amount equal to duty on the same quantity of gas oil at the rate for rebated gas oil which is in force at the time of the contravention, and they may notify him or his representative accordingly;

• (b) his becoming so liable shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties); and

• (c) if he has the relevant intent in relation to the kerosene being taken into the fuel supply, he shall be guilty of an offence.

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (5) If—

• (a) a person supplies kerosene having reason to believe that it will be put to a particular use, and

• (b) that use is one which, if a payment is not made under subsection (3) of section 13AA above, will contravene subsection (2) of that section,

his supplying the kerosene shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties) and, if he makes the supply with the relevant intent, he shall be guilty of an offence.

• (6) In this section “the relevant intent” means the intent that the restrictions imposed by section 13AA(2) above shall be contravened.

• (7) A person guilty of an offence under this section shall be liable—

• (a) on summary conviction, to a penalty of £20,000, or to imprisonment for a term not exceeding 6 months, or to both;

• (b) on conviction on indictment, to a penalty of any amount, or to a term of imprisonment not exceeding 14 years, or to both.

• (8) Any kerosene falling within subsection (9) or (10) below is liable to forfeiture.

• (9) Kerosene falls within this subsection if it is taken into a fuel supply in contravention of section 13AA(2) above.

• (10) Kerosene falls within this subsection if—

• (a) it has been supplied in circumstances in which there is reason to believe that it will be put to a particular use; and

• (b) that use is one which, if payment is not made under subsection (3) of section 13AA above, will contravene subsection (2) of that section.

17A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

19A

• (1) If on an application made for the purposes of this section by an approved person it is shown to the satisfaction of the Commissioners—

• (a) that any quantity of rebated hydrocarbon oil has been used by him, otherwise than at a refinery or other premises used for the production of hydrocarbon oil, as fuel for producing energy; and

• (b) that not less than one-sixth or more than one-third of that energy was used in the treatment of hydrocarbon oil at a refinery or in the production of hydrocarbon oil at other premises used for the production of such oil,

the applicant shall be entitled to obtain from the Commissioners repayment of one-third of the amount of excise duty which has been paid in respect of the quantity so used less the rebate allowed in respect of the duty.

• (2) In this section “an approved person” means a person for the time being approved in accordance with regulations made for the purposes of this section under section 24(1) below.

Mixing

20A

• (1) Subsections (2) and (3) apply if—

• (a) a relevant substance upon which duty under this Act has been charged is mixed in a pipe-line with another kind of relevant substance upon which such duty has been charged, and

• (b) the mixing is approved mixing (see subsection (5)).

• (2) If the Commissioners are of the opinion that—

• (a) the amount of duty that would be charged on the mixture (if duty were charged at the time of mixing), is greater than

• (b) the total amount of duty charged as mentioned in subsection (1)(a),

they may charge under this section a duty of excise on the mixture of an amount equal to the difference.

• (3) If the Commissioners are of the opinion that the amount mentioned in subsection (2)(a) is less than the amount mentioned in subsection (2)(b), they may make under this section an allowance of an amount equal to the difference.

• (4) Where a charge or allowance is made under this section, any relief or rebate which was permitted or allowed in respect of the charges mentioned in subsection (1)(a) is for the purposes of this Act to be disregarded.

• (4A) In this section “relevant substance” means biodiesel, bioethanol, bioblend, bioethanol blend or hydrocarbon oil.

• (4B) The cases that fall within subsection (1)(a) include cases where one kind of hydrocarbon oil is mixed with another kind of hydrocarbon oil.

• (5) The Commissioners may make regulations—

• (a) enabling them to grant to persons (whether individually or of a specified class) permission to mix relevant substances (or specified kinds of relevant substances) in a pipe-line, and to withdraw permission for reasonable cause;

• (b) enabling permission to be granted subject to conditions and conditions to be varied for reasonable cause,

and in this section “approved mixing” means mixing in accordance with permission under the regulations.

• (6) The Commissioners may make regulations—

• (a) for prescribing the method of charging the duty under this section;

• (b) for determining the form of the allowance under this section (which may be by way of repayment or otherwise) and the time the allowance may be made.

• (7) Regulations under this section may make different provision for different circumstances.

20AAA

• (1) A duty of excise shall be charged on a mixture which is—

• (a) produced by mixing fully rebated heavy oil with heavy oil which is not fully rebated, and

• (b) supplied for use as fuel for any engine, motor or other machinery.

• (2) A duty of excise shall be charged on a mixture which is—

• (a) produced by mixing partially rebated heavy oil with heavy oil which is not partially rebated, and

• (b) supplied for use as fuel for any engine, motor or other machinery;

but a mixture on which duty is charged under subsection (1) shall not be charged under this subsection.

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4) The rate of duty on a mixture under subsection (1) or (2) shall be—

• (a) in the case of a mixture supplied for use as fuel other than for an excepted machine, the rate of duty specified in section 6(1A)(c) (general rate for heavy oil), and

• (b) in any other case, equivalent to the rate of rebate specified in section 11(1)(b) (general rate for gas oil).

• (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (6) For the purposes of this section—

• (a) oil is fully rebated if a rebate has been allowed in respect of it under section 11(1)(c) (general rebate for heavy oil),

• (b) oil is partially rebated if a rebate has been allowed in respect of it under any other provision of section 11 or under section 13ZA or 13AA, and

• (c) a reference to mixing is a reference to non-approved mixing (within the meaning given by section 20A(5)).

• (7) The person liable to pay duty charged under this section on supply or production of a mixture is the person supplying or producing the mixture.

• (8) Where duty under a provision of this Act has been paid on an ingredient of a mixture, the duty charged under this section shall be reduced by the amount of any duty that the Commissioners are satisfied has been paid on the ingredient (but not to a negative amount).

• (9) The Commissioners may exempt a person from liability to pay duty under any provision of this Act in respect of production or supply of a mixture of a kind described in subsection (1)(a) or (2)(a) if satisfied that—

• (a) the liability was incurred accidentally, and

• (b) in the circumstances the person should be exempted.

20AAB

• (1) A person who supplies or produces a mixture on which duty is charged under section 20AAA above must notify the Commissioners of the supply or production—

• (a) in advance, or

• (b) within the period of seven days beginning with the date of supply or production.

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) Notification under subsection (1) ... above must be given in such form and in such manner, and must contain such particulars, as the Commissioners may direct.

• (4) Subject to subsection (7) below, where it appears to the Commissioners—

• (a) that a person has produced or supplied a mixture on which duty is charged under section 20AAA above, and

• (b) that he is the person liable to pay the duty,

they may assess the amount of duty due from him to the best of their judgement and notify that amount to him or his representative.

• (5) An assessment under subsection (4) above shall be treated as if it were an assessment under section 12(1) of the Finance Act 1994.

• (6) The Commissioners may give a direction that a person who is, or expects to be, liable to pay duty charged under section 20AAA above—

• (a) shall account for duty charged under that section by reference to such periods (“accounting periods”) as may be determined by or under the direction;

• (b) shall make, in relation to accounting periods, returns in such form and at such times and containing such particulars as may be so determined;

• (c) shall pay duty charged under that section at such times and in such manner as may be so determined.

• (7) The power to make an assessment under subsection (4) above does not apply in relation to a person who is for the time being subject to a direction under subsection (6) above.

• (8) Where any person—

• (a) fails to give a notification which he is required to give under subsection (1) above, or

• (b) fails to comply with a direction under subsection (6) above,

his failure shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties).

20AA

• (1) The Commissioners may make regulations allowing reliefs as regards—

• (a) any duty of excise which has been charged in respect of hydrocarbon oil, ... , or road fuel gas;

• (b) any amount which has been paid to the Commissioners under section 12(2) , 13ZB(2) or 14C(3) above;

• (c) any amount which would (apart from the regulations) be payable to the Commissioners under section 12(2) , 13ZB(2) or 14C(3) above.

• (2) The regulations may include such provision as the Commissioners think fit in connection with allowing reliefs, and in particular may—

• (a) provide for relief to take the form of a repayment or remission or an allowance to be set off against duty payable to the Commissioners by the person claiming relief;

• (b) provide for relief to be allowed in cases or classes of case set out in the regulations;

• (c) provide for relief to be allowed to the extent set out in the regulations;

• (d) provide for relief to be allowed subject to conditions imposed by the regulations;

• (e) provide for relief to be allowed subject to such conditions as the Commissioners may impose on the person claiming relief;

• (f) provide for the taking of samples of hydrocarbon oil in order to ascertain whether relief should be allowed or has been properly allowed;

• (g) make provision as to administration (which may include provision requiring the making of applications for relief);

• (ga) provide for oil on which relief is allowed to be treated for the purposes of this Act as oil on which a rebate has been allowed;

• (h) make different provision in relation to different cases or classes of case;

• (i) include such supplementary, incidental, consequential or transitional provisions as appear to the Commissioners to be necessary or expedient.

• (3) The conditions which may be imposed as mentioned in subsection (2)(d) or (e) above may include conditions as to the physical security of premises, the provision (by bond or otherwise) of security for payment, or such other matters as the Commissioners think fit.

• (4) Where a person contravenes or fails to comply with any regulation made under this section or any condition imposed by or under such a regulation—

• (a) his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties); and

• (b) any goods in respect of which the contravention or failure occurred shall be liable to forfeiture.

• (5) A reference in this section to a duty of excise includes a reference to any addition to such duty by virtue of section 1 of the Excise Duties (Surcharges or Rebates) Act 1979.

• (6) Schedule 5 to this Act shall have effect with respect to any sample of hydrocarbon oil taken in pursuance of regulations made under this section.

20AB

• (1) The Commissioners may by regulations make provision allowing reliefs as regards excise duty charged in respect of experimental fuel where—

• (a) the fuel is, or is to be, used for the purposes of a fuel-testing project that is approved by the Commissioners,

• (b) the project is approved for the purposes of the development of the fuel (see subsection (8)(a) below), and

• (c) the use takes place, or is to take place, during the period that, for the purposes of the project, is the relief period for the fuel (see subsection (8)(b) below).

• (2) In this section “experimental fuel” means a substance of a description specified in regulations made by the Commissioners.

• (3) For each experimental fuel, the Commissioners shall by regulations make provision specifying—

• (a) the beginning and end of the period that is the experimental period for that fuel; and

• (b) the form that (subject to any directions under subsection (9)(a) below) is to be taken by relief under this section as regards excise duty chargeable on that fuel.

• (4) A form of relief specified under subsection (3)(b) above must be an authorised form; and for the purposes of this section “an authorised form” is—

• (a) a repayment, or

• (b) a rebate (or extra rebate).

• (5) Relief under this section shall be allowed—

• (a) to the extent specified in, or determined in accordance with, regulations under subsection (1) above, and

• (b) subject to—

• (i) such conditions as the Commissioners may impose, and

• (ii) any directions under subsection (9)(b) below.

• (6) The conditions that may be imposed under subsection (5)(b)(i) above include, in particular, conditions in connection with—

• (a) the collection, keeping, compilation or analysis, or

• (b) the supply to the Commissioners or other persons,

of data, or information, relating to the production, use or performance of an experimental fuel.

• (7) Subsections (8) and (9) below apply where the Commissioners have approved a fuel-testing project.

• (8) The Commissioners shall give directions specifying—

• (a) each experimental fuel for the purposes of whose development the project is approved;

• (b) for each fuel specified under paragraph (a) above, the beginning and end of the period that, for the purposes of the project, is (in accordance with subsection (10) below) the relief period for the fuel; and

• (c) any conditions imposed under subsection (5)(b)(i) above that apply to the allowance under this section of relief as regards excise duty chargeable in respect of an experimental fuel used, or to be used, for the purposes of the project.

• (9) The Commissioners may give directions—

• (a) providing for relief as regards excise duty chargeable in respect of an experimental fuel used, or to be used, for the purposes of the project to take an authorised form different to the form specified under subsection (3)(b) above;

• (b) as to administration in connection with allowing reliefs under this section as regards excise duty chargeable in respect of an experimental fuel used, or to be used, for the purposes of the project.

• (10) For the purposes of subsection (8)(b) above—

• (a) the beginning of the relief period for a fuel may not be earlier than the beginning of the experimental period for that fuel; and

• (b) the end of the relief period for a fuel may not be later than the end of the experimental period for that fuel.

• (11) In this section—

• “excise duty” means—excise duty chargeable by virtue of this Act, orany addition to such duty by virtue of section 1 of the Excise Duties (Surcharges or Rebates) Act 1979 (c. 8);

• “fuel-testing project” means a pilot project connected with the technological development of environment-friendly fuels.

• (12) Regulations under this section may make different provision for different cases.

23A

• (1) If a revenue trader who is not a registered excise dealer and shipper—

• (a) buys or sells controlled oil in the course of a trade or business, or

• (b) in the course of a trade or business deals in controlled oil,

his buying or selling, or dealing in, the oil shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties).

• (2) Subsection (1) above does not apply to the buying of oil by a revenue trader if—

• (a) the oil is for use by the trader, and

• (b) that use does not involve selling or dealing in hydrocarbon oil.

• (3) Subsection (1) above does not apply to the selling of oil by a revenue trader if—

• (a) that oil was for use by the trader,

• (b) that use did not involve selling or dealing in hydrocarbon oil,

• (c) that use came to an end before the oil was used, and

• (d) the oil is sold after the use ends.

• (4) Where a revenue trader who is not a registered excise dealer and shipper is entitled to the possession of any controlled oil, the oil is liable to forfeiture.

• (5) Subsection (4) above does not apply to oil if—

• (a) that oil is for use by the revenue trader, and

• (b) that use does not involve selling or dealing in hydrocarbon oil.

• (6) Subsection (4) above does not apply to oil if—

• (a) the oil was for use by the revenue trader,

• (b) that use did not involve selling or dealing in hydrocarbon oil,

• (c) that use has come to an end,

• (d) that use came to an end before the oil was used, and

• (e) the oil is being held pending sale or other disposal.

• (7) Where oil is liable to forfeiture by virtue of subsection (4) above—

• (a) anything mixed with the oil,

• (b) any container in which the oil (and anything mixed with it) is kept, and

• (c) any equipment kept for dispensing the contents of any such container,

is liable to forfeiture.

23B

• (1) The Commissioners may by regulations make provision for—

• (a) exceptions to section 23A(1) above in addition to those allowed by section 23A(2) and (3) above;

• (b) exceptions to section 23A(4) above in addition to those allowed by section 23A(5) and (6) above;

• (c) exceptions to section 23A(7) above.

• (2) Regulations under subsection (1) above may provide for exceptions allowed by such regulations to have effect subject to conditions—

• (a) specified by such regulations;

• (b) specified by the Commissioners under such regulations.

24AA

• (1) For the purposes of section 100H(1)(p) of the Management Act (registered excise dealers and shippers regulations may, in particular, make provision authorised by this section), this section authorises provision—

• (a) requiring traders in controlled oil to notify prescribed information;

• (b) requiring traders in controlled oil to make prescribed returns;

• (c) authorising a trader in controlled oil to carry out or arrange for the carrying out of any prescribed activity falling within section 100H(1)(b) of the Management Act in relation to controlled oil, but subject to prescribed conditions or restrictions;

• (d) requiring a trader in controlled oil to give security by prescribed means for amounts that may become due from him by way of repayment of rebate;

• (e) for taking into account, in determining whether a trader in controlled oil has—

• (i) contravened any provision of registered excise dealers and shippers regulations, or

• (ii) failed to comply with any prescribed condition, restriction or requirement,

the extent to which the trader has followed guidance issued by the Commissioners (including guidance issued after the making of provision under this paragraph referring to it).

• (2) In this section—

• “prescribed” has the meaning given by section 100H(3) of the Management Act;

• “trader in controlled oil” means a registered excise dealer and shipper carrying on a trade or business that consists of or includes the dealing in, buying or selling of controlled oil.

24A

• (1) Marked oil shall not be used as fuel ... other than for an excepted machine.

• (2) For the purposes of this section marked oil is any hydrocarbon oil in which a marker is present which is for the time being designated by regulations made by the Commissioners under subsection (3) below.

• (3) The Commissioners may for the purposes of this section designate any marker which appears to them to be used for the purposes of the law of any place (whether within or outside the United Kingdom) for identifying hydrocarbon oil that is not to be used as fuel other than for excepted machines.

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (5) Where a person uses any hydrocarbon oil in contravention of subsection (1) above, his use of the oil shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties).

• (6) If a person who uses any marked oil in contravention of subsection (1) above does so in the knowledge that the oil he is using is marked oil, he shall be guilty of an offence and liable—

• (a) on summary conviction, to a penalty of £20,000 or to imprisonment for a term not exceeding 6 months, or to both;

• (b) on conviction on indictment, to a penalty of any amount, or to a term of imprisonment not exceeding 14 years, or to both.

• (7) Any marked oil which is in a vehicle, vessel, machine or appliance other than an excepted machine shall be liable to forfeiture.

• (8) Where in any proceedings relating to this section a question arises as to the nature of any substance present at any time in any hydrocarbon oil—

• (a) a certificate of the Commissioners to the effect that that substance is or was a marker designated for the purposes of this section shall be sufficient, unless the contrary is shown, for establishing that fact; and

• (b) any document purporting to be such a certificate shall be taken to be one unless it is shown not to be.

• (9) This section does not apply in relation to marked oil—

• (a) the use of which is lawful in accordance with section 12 (rebate not allowed on fuel other than for excepted machines),

• (b) which, on or after 1 April 2022, is taken into a vehicle, vessel, machine or appliance that is not an excepted machine in accordance with the law of a place outside the United Kingdom, or

• (c) which is used or taken in as mentioned in section 14E (private pleasure craft).

Tractors

Light agricultural vehicles

Agricultural engines

Vehicles used between different parts of land

Mowing machines

6

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Snow clearing vehicles

7

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Gritters

8

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Mobile cranes

9

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Digging machines

10

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Works trucks

11

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Road construction vehicles

12

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Road rollers

13

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Interpretation

14

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

In section 17 of this Act “horticultural produce” means—

but does not include hops.

SCHEDULE 2A

Part I — Light oil

Converting unleaded petrol into leaded petrol

1

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Converting unleaded petrol into higher octane unleaded petrol

2

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Mixing different kinds of unleaded petrol

2A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Power to create exceptions

3

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part II — Heavy oil

Mixing partially rebated heavy oil with unrebated heavy oil

4

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Mixing fully rebated heavy oil with unrebated heavy oil

5

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Mixing fully rebated heavy oil with partially rebated heavy oil

6

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Mixing different types of partially rebated gas oil

6A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Complex mixtures of heavy oils

7

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part IIA — Unrebated heavy oil

7A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part 2B Biodiesel

Excise duty on biodiesel

7B

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part III — Rates of duty, etc.

Rate for mixtures of light oil

8

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Rate for mixtures of heavy oil

9

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Credit for duty paid on ingredients of mixture

10

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Interpretation

11

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10B

Conferring power to require information relating to the supply or use of aviation gasoline to be given by producers, dealers and users.

10C

Requiring producers and users of and dealers in aviation gasoline to keep and produce records relating to aviation gasoline.

As to grant of relief . . .

18A

Prohibiting the use of aviation gasoline otherwise than as a fuel for aircraft.

18B

Prohibiting the taking of aviation gasoline into fuel tanks for engines other than aircraft engines.

Finance Act 1965 and Finance Act (Northern Ireland) Act 1965

Editorial notes