Part I Excise Duties

Hydrocarbon oil duties

7 Ultra low sulphur diesel.

1

In section 1 of the Hydrocarbon Oil Duties Act 1979 (definitions of oil)—

a

in subsection (1), for “(2) to (4)” there shall be substituted “ (2) to (6) ”; and

b

after subsection (4) there shall be inserted the following subsections—

5

Gas oil” means heavy oil of which not more than 50 per cent. by volume distils at a temperature not exceeding 240° C and of which more than 50 per cent. by volume distils at a temperature not exceeding 340° C.

6

Ultra low sulphur diesel” means gas oil the sulphur content of which does not exceed 0.005 per cent. by weight or is nil.

2

In section 6 of that Act (excise duty on hydrocarbon oil), in subsection (1) (as amended by section 6 above), for the words from “the rate of £0.4168” to the end of the subsection there shall be substituted “ the rates specified in subsection (1A) below. ”

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4

In subsection (3) of that section, for “that subsection” there shall be substituted “ subsection (1A) above ”.

5

In section 11(1) of that Act (rebate on heavy oil)—

a

in paragraph (b), after “gas oil” there shall be inserted “ which is not ultra low sulphur diesel ”;

b

for the word “and” at the end of that paragraph there shall be substituted—

ba

in the case of ultra low sulphur diesel, of £0.0250 a litre less than the rate at which the duty is for the time being chargeable; and

c

in paragraph (c), for “other than fuel oil and” there shall be substituted “ which is neither fuel oil nor ”.

6

In section 13AA(6) of that Act (rate for rebated gas oil), for “section 6(1) above in the case of heavy oil” there shall be substituted “ section 6(1A) above in the case of heavy oil which is not ultra low sulphur diesel, ”.

7

In subsection (1) of section 24 of that Act (control of use of duty-free and rebated oil), after “section 9(1) or (4),” there shall be inserted “ section 11, ”.

8

In section 27(1) of that Act (interpretation)—

a

after the definition of “aviation gasoline” there shall be inserted the following definition—

  • gas oil” has the meaning given by section 1(5) above;

b

after the definition of “road vehicle” there shall be inserted the following definition—

  • ultra low sulphur diesel” has the meaning given by section 1(6) above.

9

In Schedule 2A to that Act (mixing of heavy oil)—

a

in paragraph 4(a), after “section 11(1)(b)” there shall be inserted “ or (ba) ”;

b

in paragraph 6(b), after “section 11(1)(b)” there shall be inserted “ or (ba) ”;

c

after paragraph 6 there shall be inserted—

6A Mixing different types of partially rebated gas oil

A mixture of heavy oils is produced in contravention of this paragraph if such a mixture is produced by mixing—

a

ultra low sulphur diesel in respect of which a rebate has been allowed under section 11(1)(ba) of this Act; and

b

gas oil in respect of which a rebate has been allowed under section 11(1)(b) of this Act.

d

in paragraph 7 (complex mixtures of heavy oils), for the words from “if such a mixture” to the end of the paragraph there shall be substituted “ if the production of a mixture of two of the components of that mixture is a contravention of any of paragraphs 4 to 6A above. ”;

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f

in paragraph 9(2) (rate for heavy oil), for “in the case of heavy oil by section 6(1) of this Act” there shall be substituted “ by section 6(1A) of this Act in the case of heavy oil which is not ultra low sulphur diesel ”; and

g

in paragraph 11 (interpretation), for “ “fuel oil” and “gas oil” have the same meanings ” there shall be substituted “ “fuel oil” has the same meaning ”.

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This section shall come into force on such day as the Commissioners of Customs and Excise may by order made by statutory instrument appoint.