Hydrocarbon Oil Duties Act 1979

[F1 14E Rebated heavy oil and bioblend: private pleasure craft E+W+S

(1) This section applies in respect of rebated heavy oil or bioblend.

(2) The heavy oil or bioblend must not be used as fuel for propelling private pleasure craft.

(3) If, on the supply by a person (“the supplier”) of a quantity of the heavy oil or bioblend to another person, the other person makes a relevant declaration to the supplier—

(a) subsection (2) does not apply in relation to that heavy oil or bioblend, and

(b) the supplier must pay, in accordance with regulations, the amount specified in subsection (4) to the Commissioners.

(4) The amount is—

where—

Q is the quantity (in litres) of the heavy oil or bioblend, and

R is the rate of the relevant rebate at the time of supply.

(5) The “relevant rebate” is—

(a) in the case of heavy oil upon which rebate was allowed under section 13ZA or 13AA(1), the rebate under that provision,

(b) in the case of heavy oil to which paragraph (a) does not apply, the rebate under section 11 for that kind of heavy oil, and

(c) in the case of bioblend, the rebate under section 11(1)(b).

(6) The amount referred to in subsection (3)(b) is to be treated, for the purposes of section 12 of the Finance Act 1994 (assessments to excise duty), as an amount of excise duty.

(7) Regulations may provide, in cases where heavy oil or bioblend to which subsection (2) applies and other heavy oil or bioblend is taken into a craft as fuel, for the order in which the different substances are to be treated (for the purposes of this section and section 14F) as used.

F2 (7A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F3 (7B) In this section “private pleasure craft” means any aircraft or vessel used otherwise than for commercial purposes by—

(a) the owner of the aircraft or vessel, or

(b) any other person entitled to use it.

(7C) For the purposes of subsection (7B), the cases in which an aircraft or vessel is to be regarded as used for commercial purposes include any case where—

(a) consideration is provided by any person for the use of the aircraft or vessel (whether for the carriage of passengers or goods or for the supply of services or otherwise), or

(b) the aircraft or vessel is used for the purposes of any public authority.

(7D) Regulations may provide for other cases in which any aircraft or vessel is treated as being, or not being, a private pleasure craft for the purposes of this section.]

(8) In this section—

• F4 ...

• “regulations” means regulations under section 24(1) made for the purposes of this section, and

• “relevant declaration”, in relation to a quantity of heavy oil or bioblend, means a declaration, made in the way and form specified by or under regulations, that the heavy oil or bioblend is to be used as fuel for propelling private pleasure craft.]

Extent Information

E1 This version of this provision extends to England and Wales and Scotland only; a separate version has been created for Northern Ireland only

Textual Amendments

F1 Ss. 14E, 14F inserted (1.11.2008) by Finance Act 2008 (c. 9), Sch. 6 paras. 15, 21

F2 S. 14E(7A) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 9 para. 6(2) (with savings and transitional provisions in 2020 c. 26, Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(c)

F3 S. 14E(7B)-(7D) inserted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 9 para. 6(3) (with savings and transitional provisions in 2020 c. 26, Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(c)

F4 Words in s. 14E(8) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 9 para. 6(4) (with savings and transitional provisions in 2020 c. 26, Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(c)

Modifications etc. (not altering text)

C1 S. 14E(2) excluded (1.11.2008) by Finance Act 2008 (c. 9), Sch. 6 paras. 21, 23

[F5 14E Restrictions on use of certain fuel for private pleasure craft N.I.

(1) Restricted fuel must not—

(a) be used as fuel for propelling a private pleasure craft,

(b) be used as an additive or extender in any substance so used, or

(c) be taken into the fuel supply of an engine provided for propelling a vessel that is being used as a private pleasure craft.

[F6 (1A) Subsection (1) does not apply in relation to the use of rebated heavy oil or bioblend in a private pleasure craft in Northern Ireland where there is a declaration, in relation to the oil or bioblend, in accordance with subsection (3) of this section—

(a) as it extended to Northern Ireland before 1 October 2021, or

(b) as it extends to any other part of the United Kingdom at any time.]

(2) “Restricted fuel” means—

(a) rebated fuel, or

(b) marked oil that is not rebated fuel.

(3) “Rebated fuel” means rebated heavy oil, rebated biodiesel or rebated bioblend.

(4) “Marked oil” means any hydrocarbon oil in which a marker is present which is for the time being designated by regulations made by the Commissioners under subsection (5) below, other than marked oil which is in the fuel supply of an engine provided for propelling a vessel having been taken in to that supply in accordance with the law of the place where it was taken in.

(5) The Commissioners may for the purposes of this section designate any marker which appears to them to be used for the purposes of the law of any place (whether within or outside the United Kingdom) for identifying hydrocarbon oil that is not to be used as fuel for propelling private pleasure craft.

(6) In this Act “private pleasure craft” has the same meaning as in Article 14(1)(c) of Council Directive 2003/96/EC (taxation of energy products etc).

(7) The Treasury may by regulations provide for cases in which a vessel is treated as not being a private pleasure craft for the purposes of this Act (which may include cases in which the vessel is used in accordance with instructions given by an officer of HMRC for the purposes of removing restricted fuel from the vessel).]

Extent Information

E2 This version of this provision extends to Northern Ireland only; a separate version has been created for England and Wales and Scotland only

Textual Amendments

F5 S. 14E substituted (29.6.2021 for N.I. for specified purposes, 1.10.2021 for N.I. in so far as not already in force) by Finance Act 2020 (c. 14), Sch. 11 paras. 8, 18; S.I. 2021/740, regs. 2, 3 (with reg. 1(2))

F6 S. 14E(1A) inserted (1.4.2022 for N.I.) by Finance Act 2022 (c. 3), s. 76(2), Sch. 11 para. 4

Modifications etc. (not altering text)

C2 S. 14E(2) excluded (1.11.2008) by Finance Act 2008 (c. 9), Sch. 6 paras. 21, 23