Hydrocarbon Oil Duties Act 1979

JurisdictionUK Non-devolved
Citation1979 c. 5


Hydrocarbon Oil DutiesAct 1979

1979 CHAPTER 5

An Act to consolidate the enactments relating to the excise duties on hydrocarbon oil, petrol substitutes, power methylated spirits and road fuel gas.

[22nd February 1979]

Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—

The dutiable commodities

The dutiable commodities

S-1 Hydrocarbon oil.

1 Hydrocarbon oil.

(1) Subsections (2) to (4) below define the various descriptions of oil referred to in this Act.

(2) ‘Hydrocarbon oil’ means petroleum oil, coal tar, and oil produced from coal, shale, peat or any other bituminous substance, and all liquid hydrocarbons, but does not include such hydrocarbons or bituminous or asphaltic substances as are—

(a ) solid or semi-solid at a temperature of 15 C, or

(b ) gaseous at a temperature of 15C and under a pressure of 1013.25 millibars.

(3) ‘Light oil’ means hydrocarbon oil—

(a ) of which not less than 90 per cent. by volume distils at a temperature not exceeding 210C, or

(b ) which gives off an inflammable vapour at a temperature of less than 23C when tested in the manner prescribed by the Acts relating to petroleum.

(4) ‘Heavy oil’ means hydrocarbon oil other than light oil.

S-2 Provisions supplementing s. 1.

2 Provisions supplementing s. 1.

(1) The method of testing oil for the purpose of ascertaining its classification in accordance with section 1 above shall, subject to subsection (3)(b ) of that section, be such as the Commissioners may direct.

(2) Subject to subsection (3) below, the Treasury may from time to time direct that, for the purposes of any duty of excise for the time being chargeable on hydrocarbon oil, any specified description of light oil shall be treated as being heavy oil.

(3) The Treasury shall not give a direction under subsection (2) above in relation to any description of oil unless they are satisfied that the description is one which should, according to its use, be classed with heavy oil.

(4) For the purposes of the Customs and Excise Acts 1979, the production of hydrocarbon oil includes—

(a ) the obtaining of one description of hydrocarbon oil from another description of hydrocarbon oil; and

(b ) the subjecting of hydrocarbon oil to any process of purification or blending,

as well as the obtaining of hydrocarbon oil from other substances or from any natural source.

(5) Where heavy oil having a temperature exceeding 15C is measured for the purpose of ascertaining the amount of any duty of excise chargeable, or of any rebate or drawback allowable, on the oil and the Commissioners are satisfied that the oil is artificially heated, the duty shall be charged or the rebate or drawback shall be allowed on the number of litres which, in the opinion of the Commissioners, the oil would have measured if its temperature had been 15C.

S-3 Hydrocarbon oil as ingredient of imported goods.

3 Hydrocarbon oil as ingredient of imported goods.

3. Where imported goods contain hydrocarbon oil as a part or ingredient thereof, the oil shall be disregarded in the application to the goods of section 126 of the Management Act (charge of duty on manufactured or composite imported articles) unless in the opinion of the Commissioners the goods should, according to their use, be classed with hydrocarbon oil.

S-4 Petrol substitutes and power methylated spirits.

4 Petrol substitutes and power methylated spirits.

(1) In this Act ‘petrol substitute’ means any liquid intended to take the place of petrol as fuel for internal combustion piston engines, being neither hydrocarbon oil nor power methylated spirits.

(2) In subsection (1) above, ‘liquid’ does not include a substance which is gaseous at a temperature of 15C and under a pressure of 1013.25 millibars.

(3) In this Act ‘power methylated spirits’ means spirits methylated in such manner as may be prescribed by regulations made under section 77 of the Alcoholic Liquor Duties Act 1979 for methylated spirits of that class.

S-5 Road fuel gas.

5 Road fuel gas.

5. In this Act ‘road fuel gas’ means any substance which is gaseous at a temperature of 15C and under a pressure of 1013.25 millibars, and which is for use as fuel in road vehicles.

Charging provisions

Charging provisions

S-6 Excise duty on hydrocarbon oil.

6 Excise duty on hydrocarbon oil.

(1) Subject to subsection (2) below, there shall be charged on hydrocarbon oil—

(a ) imported into the United Kingdom; or

(b ) produced in the United Kingdom and delivered for home use from a refinery or from other premises used for the production of hydrocarbon oil or from any bonded storage for hydrocarbon oil, not being hydrocarbon oil chargeable with duty under paragraph (a ) above,

a duty of excise at the rate of 0.0660 a litre in the case of light oil and 0.0770 a litre in the case of heavy oil.

(2) Where imported hydrocarbon oil is removed to a refinery, the duty chargeable under subsection (1) above shall, instead of being charged at the time of the importation of that oil, be charged on the delivery of any goods from the refinery for home use and shall be the same as that which would be payable on the importation of like goods.

S-7 Excise duty on petrol substitutes and power methylated spirits.

7 Excise duty on petrol substitutes and power methylated spirits.

7. A duty of excise at the same rate as the duty of excise on light oil shall be charged—

a ) on any petrol substitute which is sent out from the premises of a person producing or dealing in petrol substitutes and which was not acquired by him duty paid under this paragraph; and
b ) on spirits used for making power methylated spirits (payable by the methylator immediately after the spirits have been so used)
S-8 Excise duty on road fuel gas.

8 Excise duty on road fuel gas.

(1) A duty of excise shall be charged on road fuel gas which is sent out from the premises of a person producing or dealing in road fuel gas and on which the duty charged by this section has not been paid.

(2) The like duty of excise shall be charged on the setting aside for use, or on the use, by any person, as fuel in a road vehicle, of road fuel gas on which the duty charged by this section has not been paid.

(3) The rate of the duty under this section shall be prescribed by order made by the Treasury, and in exercising their power under this subsection the Treasury shall select the rate (whether for all road fuel gas or for a particular kind of road fuel gas) which in their opinion is for the time being the nearest convenient and suitable rate corresponding with the rate of excise duty on light oil.

In comparing the excise duty chargeable under this section with that on light oil account shall be taken of relative average calorific values and of other relevant factors.

(4) An order made under subsection (3) above—

(a ) may express the rate of duty by reference to any method of measuring the road fuel gas;

(b ) may prescribe different rates for different kinds of road fuel gas; and

(c ) may prescribe a rate which depends in whole or in part on the rate for the time being of excise duty charged on light oil.

(5) The power to make orders under subsection (3) above shall be exercisable by statutory instrument, and any statutory instrument by which the power is exercised shall be subject to annulment in pursuance of a resolution of the House of Commons.

(6) For the purposes of this Act, so far as it relates to the excise duty chargeable under this section, road fuel gas shall be deemed to be used as fuel in a road vehicle if, but only if, it is used as fuel for the engine provided for propelling the vehicle, or for an engine which draws its fuel from the same supply as that engine.

(7)...

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