Hydrocarbon Oil Duties Act 1979

Charging provisionsU.K.

6 Excise duty on hydrocarbon oil.U.K.

(1)Subject to [F1subsections (2) . . . F2and (3)] below, there shall be charged on hydrocarbon oil—

(a)imported into the United Kingdom; or

(b)produced in the United Kingdom and delivered for home use from a refinery or from other premises used for the production of hydrocarbon oil or from any bonded storage for hydrocarbon oil, not being hydrocarbon oil chargeable with duty under paragraph (a) above, [F3a duty of excise at [F4the rates specified in subsection (1A) below.]]

[F5(1A)The rates at which the duty shall be charged are—

(a)[F6£0.4582]] a litre in the case of ultra low sulphur petrol;

(b)£0.5468 a litre in the case of light oil other than ultra low sulphur petrol;

(c)[F7£0.4582] a litre in the case of ultra low sulphur diesel; and

(d)£0.5182 a litre in the case of heavy oil other than ultra low sulphur diesel.

(2)Where imported hydrocarbon oil is removed to a refinery, the duty chargeable under subsection (1) above shall, instead of being charged at the time of the importation of that oil, be charged on the delivery of any goods from the refinery for home use and shall be the same as that which would be payable on the importation of like goods.

(2A). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F8

[F9(3)In the case of aviation gasoline, the duty of excise charged under subsection (1) above shall be at one half of the rate specified in [F10subsection (1A) above] in relation to light oil.

(4)In this Act “aviation gasoline” means light oil which—

(a)is specially produced as fuel for aircraft; and

(b)is not normally used in road vehicles; and

(c)is delivered for use solely as fuel for aircraft.]

[F116AA Excise duty on biodieselU.K.

(1)A duty of excise shall be charged on the setting aside for a chargeable use by any person, or (where it has not already been charged under this section) on the chargeable use by any person, of biodiesel.

(2)In subsection (1) “chargeable use” means use—

(a)as fuel for any engine, motor or other machinery, or

(b)as an additive or extender in any substance so used.

(3)The rate of duty under this section shall be £0.2582 a litre.]

[F126AB Excise duty on blends of biodiesel and heavy oilsU.K.

(1)A duty of excise shall be charged on bioblend—

(a)imported into the United Kingdom, or

(b)produced in the United Kingdom and delivered for home use from a refinery or from other premises used for the production of hydrocarbon oil or from any bonded storage for hydrocarbon oil, not being bioblend chargeable with duty under paragraph (a) above. This is subject to subsection (6) below.

(2)In this Act “bioblend” means any mixture that is produced by mixing—

(a)biodiesel, and

(b)heavy oil not charged with the excise duty on hydrocarbon oil.

(3)The rate at which the duty shall be charged on any bioblend shall be a composite rate representing—

(a)in respect of the proportion of the bioblend that is hydrocarbon oil, the rate that would be applicable to the bioblend if it consisted entirely of heavy oil of the description that went into producing the bioblend, and

(b)in respect of the proportion of the bioblend that is biodiesel, the rate that would be applicable to the bioblend if it consisted entirely of biodiesel.

(4)The references in subsection (3) above to the proportions of—

(a)hydrocarbon oil, and

(b)biodiesel,

are to the proportions by volume to the nearest 0.001%.

(5)If the Commissioners are not satisfied as to the proportion of biodiesel in any bioblend, the rate of duty chargeable shall be the rate that would be applicable to the bioblend if it consisted entirely of heavy oil of the description that went into producing the bioblend.

(6)Where imported bioblend is removed to a refinery, the duty chargeable under subsection (1) above shall, instead of being charged at the time of the importation of the bioblend, be charged on the delivery of any goods from the refinery for home use and shall be the same as that which would be payable on the importation of like goods.]

[F136AC Application to biodiesel and bioblend of provisions relating to hydrocarbon oilU.K.

(1)The Commissioners may by regulations provide for—

(a)references in this Act, or specified references in this Act, to hydrocarbon oil to be construed as including references to—

(i)biodiesel;

(ii)bioblend;

(b)references in this Act, or specified references in this Act, to duty on hydrocarbon oil to be construed as including references to duty under—

(i)section 6AA above;

(ii)section 6AB above;

(c)biodiesel, or bioblend, to be treated for the purposes of such of the following provisions of this Act as may be specified as if it fell within a specified description of hydrocarbon oil.

(2)Where the effect of provision made under subsection (1) above is to extend any power to make regulations, provision made in exercise of the power as extended may be contained in the same statutory instrument as the provision extending the power.

(3)In this section “specified” means specified by regulations under this section.

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

(5)Paragraph (b) of subsection (1) above shall not be taken as prejudicing the generality of paragraph (a) of that subsection.]

[6AF14Fuel substitutes.U.K.

(1)A duty of excise shall be charged on the setting aside for a chargeable use by any person, or (where it has not already been charged under this section) on the chargeable use by any person, of any liquid which is not hydrocarbon oil [F15, biodiesel or bioblend]].

(2)In this section “chargeable use” in relation to any substance means the use of that substance—

(a)as fuel for any engine, motor or other machinery; or

(b)as an additive or extender in—

(i)any substance on which duty is charged by virtue of paragraph (a) above; or

(ii)any hydrocarbon oil which is or is to be used as mentioned in that paragraph.

[F16(2A)But the use of water is not a chargeable use if—

(a)the water is comprised in an emulsion of water in gas oil, and

(b)the emulsion is stabilised by additives.]

(3)The rate of the duty under this section shall be prescribed by order made by the Treasury.

(4)In the following provisions of this Act references to hydrocarbon oil shall be construed as including references to any substance on which duty is charged under this section; and, accordingly, references to duty on hydrocarbon oil shall be construed, where a substance is to be treated as such oil, as including references to duty under this section.

(5)The Treasury may by order provide for any substance on which duty is charged under this section to be treated for the purposes of such of the following provisions of this Act as may be specified in the order as if it fell within [F17such description of hydrocarbon oil as may be so specified].

(6)In exercising their powers under this section, the Treasury shall so far as practicable secure—

(a)that a substance set aside for use or used as mentioned in subsection (2)(a) above is—

(i)charged with duty at the same rate as, and

(ii)otherwise treated for the purposes of the following provisions of this Act as if it were,

[F18hydrocarbon oil of the description] to which, when put to that use, it is most closely equivalent; and

(b)that a substance set aside for use or used as an additive or extender in any substance is—

(i)charged with duty at the same rate as, and

(ii)otherwise treated for the purposes of the following provisions of this Act as if it were,

the substance in which it is an additive or extender.

(7)For the purposes of this section “liquid” does not include any substance which is gaseous at a temperature of 15°C and under a pressure of 1013.25 millibars.

(8)The power of the Treasury to make an order under this section shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons.

(9)An order under this section—

(a)may make different provision for different cases and for different substances;

(b)may prescribe the rate of duty under this section in respect of any substance by reference to the rate of duty under this Act in respect of any other substance; and

(c)in making different provision for different substances, may define a substance by reference to the use for which it is set aside or the use to which it is put.

F197. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .U.K.

8 Excise duty on road fuel gas.U.K.

(1)A duty of excise shall be charged on road fuel gas which is sent out from the premises of a person producing or dealing in road fuel gas and on which the duty charged by this section has not been paid.

(2)The like duty of excise shall be charged on the setting aside for use, or on the use, by any person, as fuel in a road vehicle, of road fuel gas on which the duty charged by this section has not been paid.

[F20(3)The rate of the duty under this section shall be [F21£0.0900]a kilogram.]

(6)For the purposes of this Act, so far as it relates to the excise duty chargeable under this section, road fuel gas shall be deemed to be used as fuel in a road vehicle if, but only if, it is used as fuel for the engine provided for propelling the vehicle, or for an engine which draws its fuel from the same supply as that engine.

F22(7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .