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Chapter HCOTEG12870

Document Cited authorities 2 Cited in Related
Vincent
Published date15 April 2016
Record NumberHCOTEG12870
CourtHM Revenue & Customs
IssuerHM Revenue & Customs

Electricity generators using rebated heavy oil, in particular gas oil and fuel oil as part of the generating process, used to pay hydrocarbon oil duty. As Climate Change Levy (CCL) is chargeable on taxable supplies of electricity made by electricity utilities ( or those treated as such under the CCL legislation), most generators using coal or natural gas do not have to pay any form of tax on their input fuel.

Therefore electricity generated from oil could have been subject to double taxation - on the input fuel (under hydrocarbon oil duty) and on the electricity output (under CCL). To avoid this, the Government introduced a relief from duty for mineral oil used in electricity generation in January 2006.

Relief must be claimed by a qualified claimant, who is a person who causes qualifying oil to be used to produce electricity in a generating station or in a combined heat and power station (CHP).

Qualifying oil is heavy oil on whose...

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