Hydrocarbon Oil Duties Act 1979

Rebate of duty

11 Rebate on heavy oil

(1) Subject to sections 12 and 13 below, 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 kerosene other than aviation turbine fuel, of £0.0022 a litre less than the rate at which the duty is for the time being chargeable ;

(b) in the case of aviation turbine fuel, and heavy oil other than kerosene, of £0.0055 a litre less than the rate at which the duty is for the time being chargeable.

(2) In this section—

(a) " aviation turbine fuel" means kerosene which is intended to be used as fuel for aircraft engines and is allowed to be delivered for that purpose without being marked in accordance with the regulations made for the purposes of this section ;

(b) " kerosene " means heavy oil of which more than 50 per cent. by volume distils at a temperature not exceeding 240°C.

12 Rebate not allowed on fuel for road vehicles

(1) If, on the delivery of heavy oil for home use, it is intended to use the oil as fuel for a road vehicle, a declaration shall be made to that effect in the entry for home use and thereupon no rebate shall be allowed in respect of that oil.

(2) No heavy oil on whose delivery for home use rebate has been allowed shall—

(a) be used as fuel for a road vehicle ; or

(b) be taken into a road vehicle 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.

(3) For the purposes of this section and section 13 below—

(a) heavy oil shall be deemed to be used as fuel for 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; and

(b) heavy oil shall be deemed to be taken into a road vehicle as fuel if, but only if, it is taken into it as part of that supply.

13 Penalties for misuse of rebated heavy oil

(1) A person who—

(a) uses heavy oil in contravention of section 12(2) above; or

(b) is liable for heavy oil being taken into a road vehicle in contravention of that subsection,

shall be liable on summary conviction to a penalty of three times the value of the oil or £100, whichever is the greater ; and the Commissioners may recover from him an amount equal to the rebate on like oil at the rate in force at the time of the contravention.

(2) A person who supplies heavy oil having reason to believe that it will be put to a particular use shall be liable on summary conviction to a penalty of three times the value of the oil or £100, whichever is the greater, where that use would, if a payment under subsection (2) of section 12 above were not made in respect of the oil, contravene that subsection.

(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 road vehicle 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 the prescribed sum 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 2 years, or to both.

(6) Any heavy oil—

(a) taken into a road vehicle as mentioned in section 12(2) above or supplied as mentioned in subsection (2) or (3) above; or

(b) taken as fuel into a vehicle at a time when it is not a road vehicle and remaining in the vehicle as part of its fuel supply at a later time when it becomes a road vehicle,

shall be liable to forfeiture.

(7) For the purposes of this section, a person is liable for heavy oil being taken into a road vehicle in contravention of section 12(2) above if he is at the time the person having the charge of the vehicle or is its owner, except that if a person other than the owner is, or is for the time being, entitled to possession of it, that person and not the owner is liable.

14 Rebate on light oil for use as furnace fuel

(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 £0.0055 a litre less than the rate at which the duty is charged.

(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) A person who—

(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,

shall be liable on summary conviction to a penalty of three times the value of the oil or £100, whichever is the greater; and the Commissioners may recover from him the amount of the rebate allowed on the oil.

(5) A person who supplies oil having reason to believe that it will be used otherwise than as mentioned in subsection (1) above shall be liable on summary conviction to a penalty of three times the value of the oil or £100, whichever is the greater, if that use without the consent of the Commissioners would contravene subsection (2) above.

(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 the prescribed sum 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 2 years, or to both.

(9) For the purposes of this section, a person is liable for oil being taken into a vehicle, appliance or storage tank in contravention of subsection (2) above if he is at the time the person having the charge of the vehicle, appliance or tank, or is its owner, except that if a person other than the owner is, or is for the time being, entitled to possession of it, that person and not the owner is liable.

(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.