BN70 : Energy Products Directive : Expiry of Derogations

Who is likely to be affected?

  1. Suppliers and users of fuel for private pleasure-flying and private pleasure- boating. Suppliers or users of waste oil as fuel, either directly after recovery or following a recycling process for waste oils.

General description of the measure

  1. Following the expiry of the UK’s derogations from the Energy Products Directive on 31 December 2006, from 1 November 2008 fuel used for the purposes of private pleasure flying and private pleasure boating will no longer benefit from the current reduced and exempt rates of duty.
  2. Informal discussions have already begun with representatives from the boating and aviation sectors on options for implementation. Formal consultation on new regimes will be held later in the year.
  3. No decision on the renewal of the derogation concerning use of waste oil as fuel has been notified by the European Commission.

Operative date

  1. The changes will take effect on and after 1 November 2008.

Current law and proposed revisions

  1. The Hydrocarbon Oil Duties Act 1979 (HODA) will be amended by Finance Bill 2008 to take effect from 1 November 2008.
  2. Statutory instruments will be made under the relevant sections of HODA.

Further advice.

  1. If you have any questions about this change, please contact the National Advice Service.