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HMRC internal manual

Excise Assessments Interim Guidance

Assessments under provisions in the Hydrocarbon Oil Duties Act 1979: Mixing of rebated oils

HODA section 20AAA deals with the unapproved mixing of oils of different duty rates and resultant liability to pay duty. Unapproved mixing includes, for example, mixing fully rebated heavy oil (kerosene) with unrebated heavy oil (DERV). Depending on the circumstances, either the producer or the supplier of the mixture will be liable to pay duty.

Where such mixing has occurred, provisions relating to the notification and payment of duty are in section 20AAB.

Section 20AAB(4) provides the power to assess the amount of duty charged under section 20AAA from either the producer or the supplier of the mixture.

Unlike other assessments under HODA, an assessment under section 20AAB(4) may be made to best judgement. It is also treated as if it were an assessment under Finance Act 1994 section 12(1) by virtue of section 20AAB(5).

The power to assess does not apply when the person liable to pay the duty has been given a direction requiring them to make returns, account for and pay the duty.

For further guidance see HCOTEG