Finance Act 1985

SCHEDULE 4 U.K. Hydrocarbon Oil: Mixing Etc.

1 U.K. The following shall be substituted for section 20 of the M1 Hydrocarbon Oil Duties Act 1979 (contaminated or accidentally mixed oil)—

“20 Contaminated or accidentally mixed oil.

(1) This section applies where it is shown to the satisfaction of the Commissioners—

(a) that hydrocarbon oil has been delivered for home use, that since it was so delivered it has become contaminated, and that at the time it became contaminated it was oil on which the appropriate duty of excise had been paid, or

(b) that hydrocarbon oils of different descriptions have been delivered for home use, that since they were so delivered they have become accidentally mixed with each other, and that at the time of mixing they were oils on which the appropriate duty of excise had been paid.

(2) Subject to any conditions which the Commissioners see fit to impose for the protection of the revenue, they may make to such person as they see fit a payment in accordance with subsection (3) below.

(3) The payment shall be of an amount appearing to the Commissioners to be equal to the excise duty which would have been payable if—

(a) the oil had been delivered for home use (uncontaminated) at the time it became contaminated (where subsection (1)(a) above applies), or

(b) the oils had been delivered for home use (unmixed) at the time they became mixed (where subsection (1)(b) above applies).”

Marginal Citations

M1 1979 c. 5.

2 U.K. The following shall be inserted after section 20 of that Act (as substituted by paragraph 1 above)—

“ Mixing: adjustment of duty U.K.

20A Mixing: adjustment of duty.

(1) In this section “new oil” means hydrocarbon oil which after it has been charged under section 6 above as oil of one description becomes oil of a different description as a result of approved mixing in a pipeline with other hydrocarbon oil which has been so charged; and “approved mixing” has the meaning given by subsection (5) below.

(2) Where the Commissioners are of opinion that, if the new oil had fallen to be charged under section 6 above as oil of the different description, the amount of duty would have been greater or less than that actually charged, then—

(a) if in their opinion the amount would have been greater, they may charge under this section a duty of excise on the oil of an amount equal to the difference, and

(b) if in their opinion the amount would have been less, they may make under this section an allowance equal to the difference.

(3) In determining the amount of duty which would have been charged if the new oil had fallen to be charged under section 6 above as oil of the different description, the rates to be applied are those effective at the time when in the Commissioners’ opinion the oil became oil of the different description.

(4) Where the Commissioners have made a charge or allowance under subsection (2) above, then, for the purposes of this Act, any relief or rebate which was permitted or allowed at the time of the charge under section 6 above shall be disregarded.

(5) The Commissioners may make regulations—

(a) enabling them to grant to persons (whether individually or of a specified class) permission to mix in a pipeline different descriptions of hydrocarbon oil (whether generally or in the case of specified descriptions only) and to withdraw permission for reasonable cause;

(b) enabling permission to be granted subject to conditions and conditions to be varied for reasonable cause,

and in this section “approved mixing” means mixing in accordance with permission under the regulations.

(6) The Commissioners may make regulations—

(a) for prescribing the method of charging the duty under this section;

(b) for determining the form of the allowance under this section (which may be by way of repayment or otherwise) and the time the allowance may be made.

(7) Regulations under this section may make different provision for different circumstances.”

3 U.K. In section 27(3) of that Act (expressions have meanings given by certain other Acts), in the list of expressions defined in the Management Act, after the entry relating to “officer” and “proper” there shall be inserted “pipeline”.

4 U.K. In paragraph 11 of Schedule 3 to that Act (securing and collecting duty on oil produced in the United Kingdom) the words “produced in the United Kingdom” shall cease to have effect.