2006 No. 3426

EXCISE

The Hydrocarbon Oil Duties (Sulphur–free Diesel) (Hydrogenation of Biomass) (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), (e), (h) and (i) of the Hydrocarbon Oil Duties Act 19791:

Citation and commencement1

1

These Regulations may be cited as the Hydrocarbon Oil Duties (Sulphur-free Diesel) (Hydrogenation of Biomass) (Reliefs) Regulations 2006.

2

They come into force on 12th January 2007 and shall cease to have effect on 12th January 2009.

Interpretation2

In these Regulations—

  • “biomass” has the meaning given in section 2AA(2)(c) of the Act2;

  • “the Act” means the Hydrocarbon Oil Duties Act 1979.

Relief

3

Relief from duty charged by section 6(1) of the Act shall be allowed on sulphur-free diesel3 that is produced partly from the hydrogenation of biomass.

4

The relief shall take the form of a remission of duty.

5

1

The amount of duty remitted shall be calculated in accordance with the formula (A-B) x V where—

  • A is the rate of duty charged on sulphur-free diesel specified in section 6(1A) of the Act4;

  • B is the rate of duty charged on biodiesel5 by section 6AA of the Act6; and

  • V is the volume, in litres, of that proportion of the sulphur-free diesel that is produced from hydrogenated biomass.

2

In paragraph (1) “litres” means litres of such sulphur-free diesel at a temperature of 15°C.

Conditions imposed by the Commissioners6

Relief is allowed subject to such conditions (if any) as the Commissioners impose on the person claiming relief.

Cancellation of relief7

1

If there is a contravention of, or failure to comply with, any condition imposed under regulation 6, the relief allowed shall be cancelled.

2

Where any relief is cancelled, any person who claimed the relief shall, on demand, be liable to pay the amount of relief claimed.

Paul GrayMike ElandTwo of the Commissioners for Her Majesty’s Revenue and Customs
EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations, which come into force on 12th January 2007, provide for a partial relief from excise duty charged on sulphur-free diesel which is partly produced from the hydrogenation of biomass. They will cease to have effect on 12th January 2009.

Regulation 2 defines terms used in the Regulations.

Regulation 3 sets out the scope of the relief.

Regulation 4 provides that the relief shall be in the form of a remission of duty.

Regulation 5 sets out how the amount of duty remitted is calculated. An amount equivalent to the duty differential between sulphur-free diesel and biodiesel is remitted on that proportion of the fuel that is produced from the hydrogenation of biomass.

Regulation 6 permits the Commissioners to impose conditions on the person claiming the relief.

Regulation 7 provides for the cancellation and recovery of the relief in cases where there is a contravention of, or failure to comply with, any condition imposed by the Commissioners under regulation 6.

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.