The Hydrocarbon Oil and Biofuels (Road Fuel in Defined Areas) (Reliefs) Regulations 2011

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations, which come into force on 1st January 2012, provide for a relief from excise duty charged on hydrocarbon oil, biodiesel, bioblend and bioethanol blend where it is purchased by a retail supplier (“the supplier”) situated in the Scottish Islands and the Scilly Isles to be supplied for use as fuel in a road vehicle.

The amount of the relief is 5 pence per litre and is given in the form of a repayment to the supplier. The relief is given subject to the condition that the supplier must, if so required by the Commissioners for Revenue and Customs (“the Commissioners”), provide evidence of the purchase of the fuel in relation to which an application for relief is made and keep such records as the Commissioners may specify. Also, other than in relation to fuel supplied within 60 days of the date on which the supplier is registered to claim relief, the relief must be passed on to persons to whom the fuel is supplied in the form of a discount on the price of the fuel.

The relief is cancelled if there is a failure to comply with a condition subject to which it was given and the person to whom it was given is liable, on demand, to repay the amount of the relief.

A Tax Information and Impact Note covering this instrument was published on 25th November 2011 alongside a draft of this instrument and is available on the HMRC website at http://www.hmrc.gov.uk/thelibrary/tiins.htm. It remains an accurate summary of the impacts that apply to this instrument.