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HMRC internal manual

Hydrocarbon Oils Strategy

HM Revenue & Customs
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Registered Dealers in Controlled Oils (RDCO): assessments

Duty assessments for misuse of rebated oil may only be raised against RDCOs in the following circumstances:

  • where they are misusing rebated oil in a road vehicle, but please note you cannot assess an RDCO for their customers’ misuse, even if it was done with the RDCO’s knowledge
  • where they intentionally mix rebated and un-rebated oil, or partially rebated and fully rebated oil and supply the mixture for use as fuel for a road vehicle, or an excepted vehicle respectively
  • where a registered supplier of red diesel for use in private pleasure craft has failed to submit his payment return and pay the duty due, or misdeclared duty due.

HCOS4000 contains further guidance on raising assessments for misuse, mixing and smuggling of rebated oil.

Any letters accompanying assessments should be worded according to guidance in ARTG15000.