2006 No. 1980

EXCISE

The Excise Duties (Road Fuel Gas) (Reliefs) Regulations 2006

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)(a), (b), (c), (h) and (i) of the Hydrocarbon Oil Duties Act 19791:

Citation, commencement and interpretation1

1

These Regulations may be cited as the Excise Duties (Road Fuel Gas) (Reliefs) Regulations 2006.

2

They come into force on 1st September 2006 and have effect in relation to road fuel gas that is charged with duty on or after that date.

3

In these Regulations, “duty” means the duty of excise charged by section 8(1) or (2) of the Hydrocarbon Oil Duties Act 19792.

Relief2

Relief from duty is afforded as follows—

a

in the case of natural road fuel gas, £0.0181 a kilogram is remitted; and

b

in the case of any other road fuel gas, £0.0321 a kilogram is remitted.

David VarneyPaul GrayTwo of the Commissioners for Her Majesty’s Revenue and Customs

(This note is not part of the Regulations)

These Regulations, which come into force on 1st September 2006, provide for a partial relief from the excise duty charged on road fuel gas. The relief is allowed only in respect of road fuel gas that is charged with duty on or after that date.

The result of the application of the relief (which is provided in the form of a remission of part of the duty that is chargeable) is that the amount a person is liable to pay in respect of excise duty on road fuel gas is reduced by the amounts specified in these Regulations: he will therefore be liable to pay 9 pence per kilogram.

The rates of duty charged on road fuel gas are prescribed by section 8(3) of the Hydrocarbon Oil Duties Act 1979 (c. 5) (“the Oil Act”). Section 6(5) of the Finance Act 2006 (c. 25) (“the Finance Act”) amended the rates prescribed by section 8(3) of the Oil Act. That section came into force on 19th July 2006. Section 7(5) of the Finance Act further amended section 8(3) of the Oil Act so as to increase the rates of duty, with effect from 1st September 2006. The result of the application of the relief is that a person will pay the same amount as if section 7(5) of the Finance Act had not come into effect.

A full regulatory impact assessment has not been produced for this instrument, as it has no impact on the costs of business, charities or voluntary bodies.