Assessments under provisions in the Hydrocarbon Oil Duties Act 1979: tied oils
Notice 184A (HMRC website) Mineral (hydrocarbon) oil put to certain use: excise duty relief explains how relief may be obtained from excise duty on oil put to certain industrial uses. This is commonly known as the Tied Oils Scheme. Section 9 of HODA refers.
Section 10(3) provides the power to assess in situations where
- oil is put to a use that does not qualify for relief under section 9 without prior payment of the duty (for example, no relief is allowed on oil used as heating fuel), or
- a person acquires or takes into any vehicle, appliance or storage tank oil delivered under the terms of section 9 in order to put the oil to ineligible use.
The amount assessed is an amount equal to the excise duty on like oil.
For further guidance see Oils -Technical HCOTEG.