CHANGES IN THE ACT
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I would like to enlighten your readers about changes to the Hydrocarbon Oil Duties Act 1979 resulting from last month's Budget.
As part of the Government's overall Budget strategy, the Chancellor announced two measures designed to tackle the unfair use of rebated heavy oil (red diesel and kerosene) by vehicles travelling on the public road.
The first measure is intended to ensure compliance across the range of diesel users. Greater penalties will apply to people who misuse rebated oil as road fuel. In future Customs will be able to levy a maximum civil penalty of £500; £250 for the offence of "taking-in" rebated oil into a road vehicle and a separate £250 penalty for the offence of "using" rebated oil as fuel in a road vehicle. Section 13(1)(a)&(b) of the Hydrocarbon Oil Duties Act 1979 provides for the imposition of civil penalties for misuse of rebated fuel. The legislation currently provides for alternative penalties, either "taking-in" rebated oil into a road vehicle or "using" rebated oil as fuel for a road vehicle.
The section will be amended so that cumulative penalties may be Imposed in cases where an offender has both illegally placed rebated oil in the fuel tank of a vehicle and has then used that rebated oil to propel the vehicle.
The two penalties are required to ensure compliance across the range of diesel users. This clause will be welcomed by all legitimate road users and it will deter "cowboy" road hauliers from using rebated fuel.
The second measure is intended to clarify existing legislation following a recent High Court ruling which stated that "off-road" tractors can use rebated fuel when travelling on the public road for any purpose.
Schedule lof the Hydrocarbon Oil Duties Act 1979 specified the types of vehicles legally allowed to use rebated heavy oil while travelling on the public highway.
These vehicles are known as "excepted vehicles". Currently, the schedule classifies two types of tractor as "excepted vehicles": agricultural tractors and "off-road" tractors. The legislation will be amended to allow only agricultural tractors— that is, those being used for purposes relating to agriculture, horticulture and forestry, to use rebated heavy oil. The "off-road tractor" category will be deleted.
This measure will limit the use of rebated heavy oil by tractors travelling on the public roads to occasions when they are carrying out work relating to agriculture, horticulture and forestry. The change will have the affect of ensuring that busi
nesses such as general haulage or waste management will not be able to take advantage of lower fuel costs by using tractors running on rebated heavy oil.
If you need any further information concerning this change, or are in any doubt or difficulty, please contact your local Excise Advice Centre. You will find the address in the telephone directory under "Customs and Excise".
Alternatively, please feel free to contact me at Excise Policy Group, 3rd Floor West, Ralli Quays, 3 Stanley Street, Salford M60 9LA.
Darren Snowball,
HM Customs and Excise.