2014 No. 713

Excise

The Hydrocarbon Oil Duties (Reliefs for Electricity Generation) (Amendments for Carbon Price Support) Regulations 2014

Made

Laid before Parliament

Coming into force

The Commissioners for Her Majesty’s Revenue and Customs make the following Regulations in exercise of the powers conferred by section 20AA(1)(a) and (2) of the Hydrocarbon Oil Duties Act 19791:

Citation, commencement and effect1

1

These Regulations may be cited as the Hydrocarbon Oil Duties (Reliefs for Electricity Generation) (Amendments for Carbon Price Support) Regulations 2014 and come into force on 1st May 2014.

2

They have effect in relation to qualifying oil or qualifying bioblend used in a generating station or combined heat and power station on or after that date2.

Amendments to the Hydrocarbon Oil Duties (Reliefs for Electricity Generation) Regulations 2005

2

Amend the Hydrocarbon Oil Duties (Reliefs for Electricity Generation) Regulations 20053 as follows.

3

In regulation 2 (interpretation), in the definitions of “qualifying oil” and “relevant duty” after “13ZA” insert “, 13AA”.

4

For Schedule 2 (carbon price support rates) substitute the following Schedule—

SCHEDULE 2CARBON PRICE SUPPORT RATES

Regulations 6 and 10(4)

Fuel

1st April 2014 to 31st March 2015 (but for kerosene 1st May 2014 to 31st March 2015)

1st April 2015 to 31st March 2016

On and after 1st April 2016

Qualifying oil on which a rebate has been allowed under section 11(1)(a), 13ZA4 or 14(1) of the Hydrocarbon Oil Duties Act 1979 (HODA) (fuel oil, certain heavy oil used for heating etc. and light oil for use as furnace fuel)

£0.03011 per litre

£0.05730 per litre

£0.05711 per litre

Qualifying oil on which a rebate has been allowed under section 11(1)(b) (gas oil) or 13AA5 (kerosene) of HODA and qualifying bioblend

£0.02642 per litre

£0.04990 per litre

£0.04916 per litre

Jennie GrangerEdward TroupTwo of the Commissioners for Her Majesty’s Revenue and Customs
EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend the Hydrocarbon Oil Duties (Reliefs for Electricity Generation) Regulations 2005 (S.I. 2005/3320) which introduced a relief from excise duty for rebated oils used to produce electricity.

From 1st April 2013 such relief has to be reduced by the carbon price support (CPS) rates of fuel duty. These Regulations re-affirm the CPS rates for the period 1st April 2014 to 31st March 2016 and set the rates on and after 1st April 2016. They also apply the rates to kerosene used to produce electricity on or after 1st May 2014.

A Tax Information and Impact Note covering this instrument will be published on the HMRC website at http://www.hmrc.gov.uk/thelibrary/tiins.htm.