This guidance is intended to replace guidance on the Repayment of Rebate formerly contained in X-32 ‘Road fuel testing unit’ guidelines, which has now been withdrawn and replaced by the Enforcement Handbook.
All vehicles must use fully duty paid fuel to run on public
roads. If driven elsewhere (e.g. on private land), they may use
rebated heavy oil (marked rebated gas oil or ‘Red’
diesel, or marked rebated kerosene).
In very limited circumstances, rebated heavy oil can be used
as a road fuel.
In order to use rebated heavy oil on the public road, a
licence must first be obtained from HMRC, and then the rebate, i.e.
the difference between the full rate of duty on the fuel and the
rebated rate actually paid on the fuel used, must be paid.
The Hydrocarbon Oil (Payment of Rebate) Regulations 1996 provisions permit, in exceptional circumstances, the payment, by licensed users, of the rebate on rebated fuel thus allowing the use of rebated fuel on the public road.
Public Notice 75 ‘Fuel for road vehicles’ provides information on those fuels which can be used legally for use on public roads, and on making an application for a licence for repaying rebate to enable rebated oil to be used.
Following the guidance given in this section:
The
National Advice Service (NAS) provides information
on making an application for a Licence to use rebated fuel on the
public road to enquiries.
The Mineral Oils Reliefs Centre (MORC) in
Newcastle is responsible for receiving and then processing
applications for Licences to use rebated oils on the road, on
payment of the rebate for both Large Businesses and SME’s.
Applications are to be made in writing in accordance with
Public Notice 75.
On receipt, applications made by SMEs are forwarded by MORC
via the Regional Risk Teams to Oils Assurance Officers in
Local Compliance (LC) or for large businesses sent
direct to
Large Business Service (LBS) Oil and Gas Sector
team responsible.
LBS or LC Oils Assurance Officers examine the application,
consider whether a pre- authorisation visit is necessary, carry out
the visit, and then decide whether a Licence should be granted or
refused, and then make a recommendation to this effect to MORC.
MORC issue the Licence or send the applicant a
refusal depending upon the recommendation made, notifying the Tax
Accounting Centre when the licence is issued.
On receipt of a notification that a licence has been issued,
the
Tax Accounting Centre (TAC) in Birmingham notes
their records, and then issues a set of HO72 and 73 Return Forms to
the applicant.
TAC later receives and processes the HO72 and HO73 Return
Forms accounting for the payment of the Rebate.
At the end of the accounting period TAC issues Form HO75, and
Form HO74 on the eve of the Budget as may be required.
For full details of the procedures to be followed see
HCOTEG122550, together with
Table P at
HCOTEG213755 and
Table Q at
HCOTEG213756.
