ukpga/1979/5 — Hydrocarbon Oil Duties Act 1979

Hydrocarbon Oil Duties Act 1979 1979 c.5 An Act to consolidate the enactments relating to the excise duties on hydrocarbon oil, petrol substitutes, power methylated spirits and road fuel gas. [22nd February 1979] The dutiable commodities Hydrocarbon oil. 1 1 The following provisions define the various descriptions of oil referred to in this Act. 2 “ Hydrocarbon oil ” means petroleum oil, coal tar, and oil produced from coal, shale, peat or any other bituminous substance, and all liquid hydrocarbons, but does not include such hydrocarbons or bituminous or asphaltic substances as are— a solid or semi-solid at a temperature of 15°C or b gaseous at a temperature of 15°C and under a pressure of 1013·25 millibars. 3 “ Light oil ” means hydrocarbon oil— a of which not less that 90 per cent. by volume distils at a temperature not exceeding 210°C or b which gives off an inflammable vapour at a temperature of less than 23°C when tested in the manner prescribed by the Acts relating to petroleum. 3A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3C “ Unleaded petrol ” means petrol that contains not more than 0.013 grams of lead per litre of petrol ... . 3D “ Aviation gasoline ” means light oil which— a is specially produced as fuel for aircraft, b at 37.8°C, has a Reid Vapour Pressure of not less than 38kPa and not more than 49kPa, and c is delivered for use solely as fuel for aircraft. 4 “ Heavy oil ” means hydrocarbon oil other than light oil. 5 “ Gas oil ” means heavy oil of which not more than 50 per cent. by volume distils at a temperature not exceeding 240° C and of which more than 50 per cent. by volume distils at a temperature not exceeding 340°C. 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 “ Kerosene ” means heavy oil of which more than 50% by volume distils at a temperature of 240ºC or less. Provisions supplementing s. 1. 2 1 The method of testing oil for the purpose of ascertaining its classification in accordance with section 1 above shall, subject to subsection (3)(b) of that section, be such as the Commissioners may direct. 1A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Subject to subsection (3) below, the Treasury may from time to time direct that, for the purposes of any duty of excise for the time being chargeable on hydrocarbon oil, any specified description of light oil shall be treated as being heavy oil. 3 The Treasury shall not give a direction under subsection (2) above in relation to any description of oil unless they are satisfied that the description is one which should, according to its use, be classed with heavy oil. 4 For the purposes of the Customs and Excise Acts 1979, the production of hydrocarbon oil includes— a the obtaining of one description of hydrocarbon oil from another description of hydrocarbon oil; and b the subjecting of hydrocarbon oil to any process of purification or blending, as well as the obtaining of hydrocarbon oil from other substances or from any natural source. 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Biodiesel 2AA 1 In this Act “ biodiesel ” means diesel quality liquid fuel— a that is produced from biomass or waste cooking oil, b the ester content of which is not less than 96.5% by weight, and c the sulphur content of which does not exceed 0.005% by weight or is nil. 2 In subsection (1)— a “ diesel quality ” means capable of being used for the same purposes as heavy oil; b “ liquid ” does not include any substance that is gaseous at a temperature of 15°C and under a pressure of 1013.25 millibars; c “ biomass ” means vegetable and animal substances constituting the biodegradable fraction of— i products, wastes and residues from agriculture, forestry and related activities, or ii industrial and municipal waste. Bioethanol 2AB 1 In this Act “ bioethanol ” means a liquid fuel— a consisting of ethanol produced from biomass, and b capable of being used for the same purposes as light oil. 2 In subsection (1)— a “ liquid ” does not include any substance that is gaseous at a temperature of 15°C and under a pressure of 1013.25 millibars, and b “ biomass ” means vegetable and animal substances constituting the biodegradable fraction of— i products, wastes and residues from agriculture, forestry and related activities, or ii industrial and municipal waste. 3 A substance shall be treated as falling within subsection (1)(a) if it— a is denatured alcohol for the purposes of section 5 of the Finance Act 1995 (c. 4), and b would fall within subsection (1)(a) above (without reliance on this subsection) but for the presence of a component introduced— i for the purpose of rendering the substance denatured alcohol, and ii in the minimum proportion necessary for that purpose. Aqua methanol 2AC In this Act “ aqua methanol ” means a liquid fuel which meets each of the following conditions— a the amount of water it contains is not less than 4.7 per cent and not more than 5.3 per cent by volume, b the amount of methanol it contains is not less than 96 per cent by volume of the remainder of the substance, and c at a temperature of 15°C and under a pressure of 1013.25 millibars, it has a density of not less than 0.81 g/ml and not more than 0.82 g/ml. Power to amend definitions. 2A 1 The Treasury may by order made by statutory instrument amend the definition for the purposes of this Act of— za aviation gasoline; a biodiesel; b bioethanol; ba aqua methanol; c unleaded petrol. 1A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1C The Treasury may by order made by statutory instrument amend the definition for the purposes of section 11 of “fuel oil”. 2 An order under this section may contain such incidental, supplementary and transitional provision as appears to the Treasury to be appropriate. 3 No order shall be made under this section unless a draft of it has been laid before and approved by a resolution of the House of Commons. Hydrocarbon oil as ingredient of imported goods. 3 Where imported goods contain hydrocarbon oil as a part or ingredient thereof, the oil shall be disregarded in the application to the goods of section 126 of the Management Act (charge of duty on manufactured or composite imported articles) unless in the opinion of the Commissioners the goods should, according to their use, be classed with hydrocarbon oil. 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Road fuel gas. 5 1 In this Act “ road fuel gas ” means any substance which is gaseous at a temperature of 15°C and under a pressure of 1013·25 millibars, and which is for use as fuel in road vehicles. 2 In this Act “ natural road fuel gas ”is road fuel gas with a methane content of not less than 80%. Charging provisions Excise duty on hydrocarbon oil. 6 1 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, a duty of excise at the rates specified in subsection (1A) below. 1A The rates are— a £0.5795 a litre in the case of unleaded petrol, aa £0.3820 a litre in the case of aviation gasoline, b £0.6767 a litre in the case of light oil other than unleaded petrol or aviation gasoline , and c £0.5795 a litre in the case of heavy oil. 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Excise duty on biodiesel 6AA 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, ... aa for heating, b as an additive or extender in any substance used as mentioned in paragraph (a) or (aa) . c for the production of bioblend. 3 The rate of duty under this section is the same as that in the case of heavy oil . 4 See section 14A (biodiesel used other than as fuel for road vehicles) for rebates on duty charged under this section. Excise duty on blends of biodiesel and heavy oils 6AB 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 per litre of duty under this section on any bioblend is the same as that in the case of heavy oil. 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4A See section 14B (bioblend used as fuel for excepted machines ) for rebates on duty charged under this section. 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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. Application to biodiesel and bioblend of provisions relating to hydrocarbon oil 6AC 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. Excise duty on bioethanol 6AD 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 bioethanol. 2 In subsection (1) “ chargeable use ” means use— a as fuel for any engine, motor or other machinery, b as an additive or extender in any substance so used, or c for the production of bioethanol blend. 3 The rate of duty under this section is the same as that in the case of unleaded petrol. Excise duty on blends of bioethanol and hydrocarbon oil 6AE 1 A duty of excise shall be charged on bioethanol blend— a imported into the United Kingdom, or b produced in the United Kingdom and delivered for home use from a refinery or other premises used for the production of hydrocarbon oil or from any bonded storage for hydrocarbon oil, not being bioethanol blend chargeable with duty under paragraph (a) above. 2 In this Act “ bioethanol blend ” means any mixture that is produced by mixing— a bioethanol, and b hydrocarbon oil not charged with excise duty. 3 The rate at which the duty shall be charged on any bioethanol blend is the same as that in the case of unleaded petrol. 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Where imported bioethanol blend 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 blend, 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. Application to bioethanol and bioethanol blend of provisions relating to hydrocarbon oil 6AF 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 bioethanol; ii bioethanol blend; 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 6AD above; ii section 6AE above; c bioethanol, or bioethanol blend, 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. Excise duty on aqua methanol 6AG 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 aqua methanol. 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 is— a in the case of a chargeable use within subsection (2)(a), £0.079 a litre; b in the case of a chargeable use within subsection (2)(b), the rate prescribed by order made by the Treasury. 4 In exercising their power under subsection (3)(b), the Treasury shall so far as practicable secure that aqua methanol set aside for use or used as an additive or extender in any substance is charged with duty at the same rate as the substance in which it is an additive or extender. 5 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. 6 An order under this section— a may make different provision for different cases, and b may prescribe the rate of duty under subsection (3)(b) by reference to the rate of duty under this Act in respect of any other substance. Application to aqua methanol of provisions relating to hydrocarbon oil 6AH 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 aqua methanol; 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 section 6AG above; c aqua methanol 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. Fuel substitutes. 6A 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— a hydrocarbon oil, b biodiesel, c bioblend, d bioethanol, ... e bioethanol blend. , or f aqua methanol. 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; aa for heating; or b as an additive or extender in any substance used as mentioned in paragraph (a) or (aa) . 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 such 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, hydrocarbon 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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Excise duty on road fuel gas. 8 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 for a road vehicle, of road fuel gas on which the duty charged by this section has not been paid. 3 The rate of the duty under this section shall be— a in the case of natural road fuel gas, £0.2470 a kilogram, and b in any other case, £0.3161 a kilogram. 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Delivery of oil without payment of duty Oil delivered for home use for certain industrial purposes. 9 1 The Commissioners may permit hydrocarbon oil to be delivered for home use to an approved person, without payment of excise duty on the oil, where— a it is to be put by him to a use qualifying for relief under this section; or b it is to be supplied by him in the course of a trade of supplying oil for any such use. 2 the uses of hydrocarbon oil qualifying for relief under this section are all uses which do not consist in either— a the use of the oil as fuel for any engine, motor or other machinery; or b the use of the oil as heating fuel. 4 Where the Commissioners are authorised to give permission under subsection (1) above in the case of any oil, but the permission is for any reason not given, they shall, if satisfied that the oil has been put by an approved person to a use qualifying for relief under this section, repay to him the amount of the excise duty paid on the oil, less any rebate allowed in respect of the duty. 5 In this section— a “ an approved person ” means a person for the time being approved in accordance with regulations made for any of the purposes of subsection (1) or (4) above under section 24(1) below; . . . b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Restrictions on the use of duty-free oil. 10 1 Except with the consent of the Commissioners, no oil in whose case delivery without payment of duty has been permitted under section 9 above shall— a be put to a use not qualifying for relief under that section; or b be acquired or taken into any vehicle, appliance or storage tank in order to be put to such a use. 2 In giving their consent for the purposes of subsection (1) above, the Commissioners may impose such conditions as they think fit. 3 Where any person — a uses or acquires oil in contravention of subsection (1) above; or b is liable for oil being taken into a vehicle, appliance or storage tank in contravention of that subsection, his use or acquisition of the oil or, as the case may be, his becoming so liable shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties) ; and the Commissioners may assess an amount equal to the excise duty on like oil at the rate in force at the time of the contravention as being excise duty due from him, and notify him or his representative accordingly. 4 Where any person supplies oil having reason to believe that it will be put to a use not qualifying for relief under section 9 above and that use without the consent of the Commissioners would contravene subsection (1) above his supplying the oil shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties) . 5 A person who, with the intent that the restrictions imposed by subsection (1) above should be contravened,— a uses or acquires oil in contravention of that subsection; or b supplies oil having reason to believe that it will be put to a use not qualifying for relief under section 9 above, being a use which, without the consent of the Commissioners, would contravene that subsection, shall be guilty of an offence under this subsection. 6 A person who is liable for oil being taken into a vehicle, appliance or storage tank in contravention of subsection (1) above shall be guilty of an offence under this subsection where the oil was taken in with the intent by him that the restrictions imposed by that subsection should be contravened. 7 A person guilty of an offence under subsection (5) or (6) above shall be liable— a on summary conviction, to a penalty of £20,000 or of three times the value of the oil in question, whichever is the greater, or to imprisonment for a term not exceeding 6 months, or to both; or b on conviction on indictment, to a penalty of any amount or to imprisonment for a term not exceeding 14 years , or to both. 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Any oil acquired, or taken into a vehicle, appliance or storage tank as mentioned in subsection (1) above, or supplied as mentioned in subsection (4) or (5) above, shall be liable to forfeiture. Rebate of duty Rebate on heavy oil. 11 1 Subject to sections ... 12(1), 13ZA and 13AA(1) , where heavy oil charged with the excise duty on hydrocarbon oil is delivered for home use, there shall be allowed on the oil at the time of delivery a rebate of duty at a rate— a in the case of fuel oil, of £0.1070 a litre less than the rate at which the duty is for the time being chargeable; b in the case of gas oil ... , of £0.1114 a litre less than the rate at which the duty is for the time being chargeable; ba . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c in the case of heavy oil which is neither fuel oil nor gas oil, equal to the rate at which the duty is for the time being chargeable. 2 In this section— “ fuel oil ” means heavy oil which contains in solution an amount of asphaltenes of not less than 0·5 per cent. or which contains less than 0·5 per cent. but not less than 0·1 per cent. of asphaltenes and has a closed flash point not exceeding 150°C; . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 This subsection applies in any case where— a oil is delivered for home use, b regulations under section 24 below require, as a condition of allowing a rebate on the oil under subsection (1) above, that a marker prescribed by regulations under that section shall have been added to the oil, and c the marker is present at the time of delivery for home use but in such a proportion that its presence falls to be disregarded by virtue of provision made by regulations under that section. 4 In any case where subsection (3) above applies, a rebate may be allowed on the oil at the time it is delivered for home use if it appears to the Commissioners to be appropriate to allow it. 5 Where a rebate is allowed under subsection (4) above, the rate at which the rebate is allowed— a shall be such rate as appears to the Commissioners to be appropriate, but b shall not be less than 95 per cent. of, and shall not exceed, the rate of rebate specified in the relevant paragraph of subsection (1) above. Rebate not allowed on fuel other than for excepted machines . 12 1 If, on the delivery of heavy oil for home use, it is intended to use the oil as fuel other than for an excepted machine , a declaration shall be made to that effect in the entry for home use and thereupon no rebate under section 11 above shall be allowed in respect of that oil. 2 No heavy oil on whose delivery for home use rebate has been allowed (whether under section 11 above or section 13ZA or 13AA(1) below) shall— a be used as fuel other than for an excepted machine, or b be taken into any vehicle, vessel, machine or appliance, other than an excepted machine, as fuel, unless an amount equal to the amount for the time being allowable in respect of rebate on like oil has been paid to the Commissioners in accordance with regulations made under section 24(1) below for the purposes of this section. 2A But subsection (2) does not apply in relation to fuel used or taken in as mentioned in section 14E (private pleasure craft). 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Penalties for contravention of section 12 . 13 1 Where any person — a uses heavy oil in contravention of section 12(2) above; or b is liable for heavy oil being taken into a vehicle, vessel, machine or appliance in contravention of that subsection, his use of the oil or his becoming so liable (or, where his conduct includes both, each of them) shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties) . . . 1A Where oil is used, or is taken into a vehicle, vessel, machine or appliance , in contravention of section 12(2) above, the Commissioners may— a assess an amount equal to the rebate on like oil at the rate in force at the time of the contravention as being excise duty due from any person who used the oil or was liable for the oil being taken into the vehicle, vessel, machine or appliance , and b notify him or his representative accordingly. 2 Where any person supplies heavy oil having reason to believe that it will be put to a particular use and that use would, if a payment under subsection (2) of section 12 above were not made in respect of the oil, contravene that subsection his supplying the oil shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties). . 3 A person who, with the intent that the restrictions imposed by section 12 above should be contravened,— a uses heavy oil in contravention of subsection (2) of that section; or b supplies heavy oil having reason to believe that it will be put to a particular use, being a use which would, if a payment under that subsection were not made in respect of the oil, contravene that subsection, shall be guilty of an offence under this subsection. 4 A person who is liable for heavy oil being taken into a vehicle, vessel, machine or appliance in contravention of subsection (2) of section 12 above shall be guilty of an offence under this subsection where the oil was taken in with the intent by him that the restrictions imposed by that section should be contravened. 5 A person guilty of an offence under subsection (3) or (4) above shall be liable— a on summary conviction, to a penalty of £20,000 or of three times the value of the oil in question, whichever is the greater, or to imprisonment for a term not exceeding 6 months, or to both; or b on conviction on indictment, to a penalty of any amount, or to imprisonment for a term not exceeding 14 years , or to both. 6 Any heavy oil— a taken into a vehicle, vessel, machine or appliance, other than an excepted machine, in contravention of section 12(2) above or supplied as mentioned in subsection (2) or (3) above; or b taken as fuel into a vehicle, vessel, machine or appliance at a time when it is an excepted machine and remaining in that vehicle, vessel, machine or appliance as part of its fuel supply at a later time when it ceases to be an excepted machine , shall be liable to forfeiture. 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Rebate on certain heavy oil used for heating etc 13ZA 1 This section applies if, on the delivery of heavy oil (other than kerosene) upon which rebate at the rate mentioned in section 11(1)(c) would otherwise be allowed, it is intended to use the heavy oil— a for heating, or b as fuel for an engine. 2 Rebate is to be allowed on the heavy oil at the rate mentioned in section 11(1)(a) (rather than at the rate mentioned in section 11(1)(c)). 3 Nothing in this section applies in relation to heavy oil to which section 12(1) applies. Restrictions on supply of certain heavy oil for heating etc 13ZB 1 If a person supplies relevant heavy oil, having reason to believe that it will be put to a particular use that is a prohibited use— a the Commissioners may assess the amount specified in subsection (3) as being excise duty due from the person (and may notify the person or the person's representative accordingly), and b the supply of the heavy oil is conduct that attracts a penalty under section 9 of the Finance Act 1994 (civil penalties). 2 Subsection (1) does not apply in relation to a quantity of relevant heavy oil if (before the time of supply) the amount specified in subsection (3) has been paid to the Commissioners, in accordance with regulations, in respect of it. 3 The amount is— Q × RRFO where— Q is the quantity (in litres) of the relevant heavy oil, and RRFO is the rate for rebated fuel oil at the time of payment. 4 For the purposes of subsection (3) the rate for rebated fuel oil at any time is— a the rate of duty under section 6(1A)(c) at that time, minus b the rate of rebate allowable under section 11(1)(a) at that time. 5 In this section— “ prohibited use ” means— use for heating, or use as fuel for an engine (except where such use would amount to use as fuel other than for an excepted machine ), “ regulations ” means regulations under section 24(1) made for the purposes of this section, and “ relevant heavy oil ” means heavy oil, other than kerosene, upon which rebate at the rate mentioned in section 11(1)(c) has been allowed. 6 Nothing in this section applies to a person who supplies relevant heavy oil for re-processing. Rebate on unleaded petrol 13A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Restrictions on use of rebated kerosene. 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. Penalties for contravention of section 13AA . 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. Use of rebated kerosene for private pleasure-flying 13AC 1 This section applies in respect of kerosene upon which a rebate under section 11(1)(c) has been allowed. 2 The kerosene must not be used as fuel for private pleasure-flying. 3 If, on the supply of a quantity of the kerosene to a person, the person makes a relevant declaration to the supplier— a subsection (2) does not apply in relation to that kerosene, and b the person must pay, in accordance with regulations, the amount specified in subsection (4) to the Commissioners. 4 The amount is— Q × R where— Q is the quantity (in litres) of the kerosene, and R is the rate of the rebate under section 11(1)(c) at the time of the declaration. 5 The amount referred to in subsection (3)(b) is to be treated, for the purposes of section 12 of the Finance Act 1994 (assessments to excise duty), as an amount of excise duty. 6 Regulations may provide, in cases where kerosene to which subsection (2) applies and other kerosene is taken into an aircraft as fuel, for the order in which the different kinds of kerosene are to be treated (for the purposes of this section and section 13AD) as used. 6A In this section “ private pleasure-flying ” means the use of an aircraft otherwise than for commercial purposes by— a the owner of the aircraft, or b any other person entitled to use it. 6B For the purposes of subsection (6A), the cases in which an aircraft is to be regarded as used for commercial purposes include any case where— a consideration is provided by any person for the use of the aircraft (whether for the carriage of passengers or goods or for the supply of services or otherwise), or b the aircraft is used for the purposes of any public authority. 6C Regulations may provide for other cases in which use of an aircraft is treated as being, or not being, private pleasure-flying for the purposes of this section. 7 In this section— ... “ regulations ” means regulations under section 24(1) made for the purposes of this section, and “ relevant declaration ”, in relation to a quantity of kerosene, means a declaration, made in the way and form specified by or under regulations, that the kerosene is to be used for private pleasure-flying. Penalties for contravention of section 13AC 13AD 1 This section applies if a person— a uses a quantity of kerosene in contravention of section 13AC(2), or b fails to comply with section 13AC(3)(b). 2 The Commissioners may assess the amount specified in section 13AC(4) as being excise duty due from the person, and may notify the person or the person's representative accordingly. 3 The use or failure attracts a penalty under section 9 of the Finance Act 1994 (civil penalties). 4 For the purposes of that section, if this section applies by virtue of subsection (1)(b)— a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c the failure also attracts daily penalties. 5 If this section applies by virtue of subsection (1)(a), for the purpose of subsection (2) the reference in section 13AC(4) to the time of the declaration is to be read as the time of use. Rebate on light oil for use as furnace fuel. 14 1 On light oil charged with the excise duty on hydrocarbon oil, and delivered for home use as furnace fuel for burning in vaporised or atomised form by a person for the time being approved in accordance with regulations made for the purposes of this subsection under section 24(1) below, there shall be allowed at the time of delivery a rebate of duty at a rate of £0.1070 a litre less than the rate at which the duty is charged. 1A No rebate shall be allowed under this section in respect of bioethanol blend. 2 Except with the consent of the Commissioners, no oil in whose case rebate has been allowed under this section shall— a be put to a use otherwise than as mentioned in subsection (1) above; or b be acquired or taken into any vehicle, appliance or storage tank in order to be put to such a use. 3 In giving their consent for the purposes of subsection (2) above, the Commissioners may impose such conditions as they think fit. 4 Where any person — a uses or acquires oil in contravention of subsection (2) above; or b is liable for oil being taken into a vehicle, appliance or storage tank in contravention of that subsection, his use or acquisition of the oil or, as the case may be, his becoming so liable shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties) ; and the Commissioners may assess the amount of rebate allowed on the oil as being excise duty due from him, and notify him or his representative accordingly. 5 Where any person supplies oil having reason to believe that it will be used otherwise than as mentioned in subsection (1) above and that use without the consent of the Commissioners would contravene subsection (2) above his supplying the oil shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties). . 6 A person who, with the intent that the restrictions imposed by subsection (2) above should be contravened,— a uses or acquires oil in contravention of that subsection; or b supplies oil having reason to believe that it will be put to a use otherwise than as mentioned in subsection (1) above, being a use which, without the consent of the Commissioners, would contravene subsection (2) above, shall be guilty of an offence under this subsection. 7 A person who is liable for oil being taken into a vehicle, appliance or storage tank in contravention of subsection (2) above shall be guilty of an offence under this subsection where the oil was taken in with the intent by him that the restrictions imposed by that subsection should be contravened. 8 A person guilty of an offence under subsection (6) or (7) above shall be liable— a on summary conviction, to a penalty of £20,000 or of three times the value of the oil in question, whichever is the greater, or to imprisonment for a term not exceeding 6 months, or to both; or b on conviction on indictment, to a penalty of any amount, or to imprisonment for a term not exceeding 14 years , or to both. 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Any oil acquired, or taken into a vehicle, appliance or storage tank, as mentioned in subsection (2) above, or supplied as mentioned in subsection (5) or (6) above, shall be liable to forfeiture. Rebate on biodiesel used as fuel for excepted machines 14A 1 This section applies if, at the excise duty point, it is intended that biodiesel on which duty under section 6AA is charged will not be— a used as fuel other than for an excepted machine , ... aa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b used as an additive or extender in any substance other than a substance used as fuel for an excepted machine . 2 A rebate of duty is to be allowed on the biodiesel at a rate of £0.1114 a litre less than the rate of duty under section 6AA. 3 In this section “ the excise duty point ” has the same meaning as in section 1 of the Finance (No.2) Act 1992. 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Rebate on bioblend used as fuel for excepted machines . 14B 1 This section applies if, on the delivery for home use of bioblend on which duty under section 6AB is charged— a it is intended that the bioblend will not be— i used as fuel other than for an excepted machine , ia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ii used as an additive or extender in any substance other than a substance used as fuel for an excepted machine , and b if the heavy oil used to produce the bioblend was kerosene, it is intended that the bioblend will not be— i used as mentioned in section 13AA(1), or ii used as an additive or extender in any substance so used. 2 A rebate of duty is to be allowed on the bioblend. 3 The rate per litre of the rebate is the sum of— a HO% of the relevant hydrocarbon rebate rate, and b BD% of the relevant biodiesel rebate rate. 4 “The relevant hydrocarbon rebate rate” is the rate specified in section 11(1) for the kind of heavy oil used to produce the bioblend. 5 “The relevant biodiesel rebate rate” is— a if the heavy oil used to produce the bioblend was kerosene, the rate of duty under section 6AA, and b otherwise, the rate of the rebate under section 14A. 6 In subsection (3)— “ HO% ” means the percentage of the bioblend that is heavy oil, and “ BD% ” means the percentage of the bioblend that is biodiesel, where the percentages are by volume to the nearest 0.001%. Restrictions on use of rebated biodiesel and bioblend 14C 1 Rebated biodiesel or bioblend must not be— a used as fuel other than for an excepted machine , b used as an additive or extender in any substance other than a substance used as fuel for an excepted machine , ... or c taken into the fuel supply of any engine that is not the engine of an excepted machine as fuel or as an additive or extender in any substance used as fuel , or d (in the case of rebated biodiesel) used as fuel for propelling private pleasure craft or as an additive or extender in any substance so used. 2 Rebated bioblend that was produced by mixing kerosene and biodiesel must not be— a used as mentioned in section 13AA(1), b used as an additive or extender in any substance so used, or c taken into the fuel supply of an engine used as mentioned in section 13AA(1) . 3 Subsections (1) and (2) do not apply to a quantity of biodiesel or bioblend if the amount specified in subsection (4) has been paid to the Commissioners, in accordance with regulations, in respect of it. 4 The amount is— Q × R where— Q is the quantity (in litres) of the biodiesel or bioblend, and R is the rate of the rebate under section 14A or 14B at the time of payment. 4A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 In subsection (3) “ regulations ” means regulations under section 24(1) made for the purposes of this section. Penalties for misuse of rebated biodiesel or bioblend 14D 1 If biodiesel or bioblend is used or taken into a fuel supply in contravention of section 14C(1) or (2), the Commissioners may assess the amount specified in section 14C(4) as being excise duty due from any person who— a used the biodiesel or bioblend, or b was liable for it being taken into the fuel supply , and may notify the person or the person's representative accordingly. 2 Conduct within any of the following paragraphs attracts a penalty under section 9 of the Finance Act 1994 (civil penalties)— a using biodiesel or bioblend in contravention of section 14C(1) or (2), b becoming liable for biodiesel or bioblend being taken into a fuel supply in contravention of section 14C(1) or (2), and c supplying biodiesel or bioblend, having reason to believe that it will be put to a particular use that is a prohibited use. 3 A person commits an offence if— a the person intentionally uses biodiesel or bioblend in contravention of section 14C(1) or (2), b the person is liable for biodiesel or bioblend being taken into a fuel supply in contravention of section 14C(1) or (2), and knows that the taking in is in contravention of that provision, or c the person supplies biodiesel or bioblend, intending that it will be put to a particular use that is a prohibited use. 4 “ Prohibited use ” means a use that would contravene section 14C(1) or (2) if no payment under section 14C(3) were made in respect of the biodiesel or bioblend. 5 A person guilty of an offence under this section is liable— a on summary conviction, to— i a fine not exceeding £20,000 or (if it is greater) 3 times the value of the biodiesel or bioblend in question, or ii imprisonment for a term not exceeding 12 months, or both, and b on conviction on indictment, to a fine or imprisonment for a term not exceeding 14 years or both. 6 Subsection (5)(a)(ii) has effect as if the reference there to 12 months were to 6 months— a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b in this section as it extends to Northern Ireland. 7 In this section as it extends to England and Wales, subsection (5)(a)(ii) has effect as if the reference there to 12 months were to the general limit in a magistrates’ court (or, in relation to offences committed before 2 May 2022, to 6 months). Rebated heavy oil and bioblend: private pleasure craft 14E 1 This section applies in respect of rebated heavy oil or bioblend. 2 The heavy oil or bioblend must not be used as fuel for propelling private pleasure craft. 3 If, on the supply by a person (“ the supplier ”) of a quantity of the heavy oil or bioblend to another person, the other person makes a relevant declaration to the supplier— a subsection (2) does not apply in relation to that heavy oil or bioblend, and b the supplier must pay, in accordance with regulations, the amount specified in subsection (4) to the Commissioners. 4 The amount is— Q × R where— Q is the quantity (in litres) of the heavy oil or bioblend, and R is the rate of the relevant rebate at the time of supply. 5 The “relevant rebate” is— a in the case of heavy oil upon which rebate was allowed under section 13ZA or 13AA(1), the rebate under that provision, b in the case of heavy oil to which paragraph (a) does not apply, the rebate under section 11 for that kind of heavy oil, and c in the case of bioblend, the rebate under section 11(1)(b). 6 The amount referred to in subsection (3)(b) is to be treated, for the purposes of section 12 of the Finance Act 1994 (assessments to excise duty), as an amount of excise duty. 7 Regulations may provide, in cases where heavy oil or bioblend to which subsection (2) applies and other heavy oil or bioblend is taken into a craft as fuel, for the order in which the different substances are to be treated (for the purposes of this section and section 14F) as used. 7A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7B In this section “ private pleasure craft ” means any aircraft or vessel used otherwise than for commercial purposes by— a the owner of the aircraft or vessel, or b any other person entitled to use it. 7C For the purposes of subsection (7B), the cases in which an aircraft or vessel is to be regarded as used for commercial purposes include any case where— a consideration is provided by any person for the use of the aircraft or vessel (whether for the carriage of passengers or goods or for the supply of services or otherwise), or b the aircraft or vessel is used for the purposes of any public authority. 7D Regulations may provide for other cases in which any aircraft or vessel is treated as being, or not being, a private pleasure craft for the purposes of this section. 8 In this section— ... “ regulations ” means regulations under section 24(1) made for the purposes of this section, and “ relevant declaration ”, in relation to a quantity of heavy oil or bioblend, means a declaration, made in the way and form specified by or under regulations, that the heavy oil or bioblend is to be used as fuel for propelling private pleasure craft. Penalties for contravention of section 14E 14F 1 This section applies if a person— a uses a quantity of rebated heavy oil or bioblend in contravention of section 14E(2), or b fails to comply with section 14E(3)(b). 2 The Commissioners may assess the amount specified in section 14E(4) as being excise duty due from the person, and may notify the person or the person's representative accordingly. 3 The use or failure attracts a penalty under section 9 of the Finance Act 1994 (civil penalties). 4 For the purposes of that section, if this section applies by virtue of subsection (1)(b)— a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c the failure also attracts daily penalties. 5 If this section applies by virtue of subsection (1)(a), for the purpose of subsection (2) the reference in section 14E(4) to the time of supply is to be read as the time of use. 6 Rebated heavy oil or bioblend is liable to forfeiture if— a it is in the fuel supply of an engine provided for propelling a vessel that is being used as a private pleasure craft, and b its use would be in contravention of section 14E(2). Drawback Drawback of duty on exportation etc. of certain goods. 15 1 A drawback equal to any amount . . . paid in respect of the goods in question by way of the excise duty on hydrocarbon oil shall be allowed on the . . ., shipment as stores or warehousing in an excise warehouse for use as stores of— a any hydrocarbon oil; or b any article in which there is contained any hydrocarbon oil which was used, or which formed a component of any article used, as an ingredient in the manufacture or preparation of the article. 2 The Treasury may by order direct as respects articles of any class or description specified in the order that, subject to the provisions of the order, drawback shall be allowed under subsection (1) above in respect of hydrocarbon oil (or goods containing it) used as a material, solvent, extractant, preservative or finish in the manufacture or preparation of the articles. 3 On the making of an order under subsection (2) above this Act shall have effect, subject to the provisions of the order and of this section, as if the reference in subsection (1)(b) above to an article in which there is contained any hydrocarbon oil used as an ingredient in the manufacture or preparation of the article included a reference to an article of the class or description specified in the order. 4 An order made under subsection (2) above as respects articles of any class or description— a may provide for drawback to be allowed in respect of hydrocarbon oil (or goods containing it) used as a material, solvent, extractant, preservative or finish in the manufacture or preparation not directly of articles of that class or description but of articles incorporated in them; and b may provide that the quantity of hydrocarbon oil as respects duty on which drawback is to be allowed shall be determined by reference to average quantities or otherwise. 5 The power to make orders under subsection (2) above shall be exercisable by statutory instrument, and any statutory instrument by which the power is exercised shall be subject to annulment in pursuance of a resolution of the House of Commons. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Miscellaneous reliefs Heavy oil used by horticultural producers. 17 1 If, on an application made for the purposes of this section by a horticultural producer, it is shown to the satisfaction of the Commissioners that within the period for which the application is made any quantity of heavy oil has been used by the applicant as mentioned in subsection (2) below, then, subject as provided below, the applicant shall be entitled to obtain from the Commissioners repayment of the amount of any excise duty which has been paid in respect of the quantity so used less any rebate allowed in respect of the duty , ... . 2 A horticultural producer shall be entitled to repayment under this section in respect of oil used by him— a in the heating, for the growth of horticultural produce primarily with a view to the production of horticultural produce for sale, of any building or structure, or of the earth or other growing medium in it; or b in the sterilisation of the earth or other growing medium to be used for the growth of horticultural produce as mentioned in paragraph (a) above in any building or structure. 3 Where any quantity of oil is used partly for any such purpose as is mentioned in subsection (2) above and partly for another purpose, such part of that quantity shall be treated as used for each purpose as may be determined by the Commissioners. 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 The Commissioners may require an applicant for repayment under this section— a to state such facts concerning the hydrocarbon oil delivered to or used by him, or concerning the production of horticultural produce by him, as they may think necessary to deal with the application; b to furnish them in such form as they may require with proof of any statement so made; and c to permit an officer to inspect any premises or plant used by him for the production of horticultural produce or in or for which any such oil was used. 6 If— a the facts required by the Commissioners under subsection (5)(a) above are not stated; or b proof of the matters referred to in subsection (5)(b) above is not furnished to the satisfaction of the Commissioners; or c an applicant fails to permit inspection of premises or plant as required under the subsection (5)(c) above, the facts shall be deemed for the purposes of this section to be such as the Commissioners may determine. 7 In this section— a “ horticultural produce ” has the meaning assigned to it by Schedule 2 to this Act; and b “ horticultural producer ” means a person growing horticultural produce primarily for sale. Biodiesel used otherwise than as road fuel 17A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Fuel used in lifeboats , etc. 19 1 Subsection (3) below shall have effect in the case of— a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b any lifeboat owned by the Royal National Lifeboat Institution (in this subsection called “the Institution”); or c any tractor or gear owned by the Institution and used for the purpose of launching or hauling in any lifeboat owned by it, in respect of which an application is made to the Commissioners for the purposes of this section ..., by the Institution. 2 Paragraphs (b) and (c) of subsection (1) above shall apply to hovercraft as if hovercraft were boats or vessels. 3 Subject to the provisions of this sectio