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HMRC internal manual

Oils Technical Manual

Repayment of Rebate Provisions: Initial enquiries and applications

Initial enquiries

The Excise Helpline, LBS/ISBC

Inform the enquirer that authority is only given in cases of exceptional need. Refer enquirers to Notice 75, and ask them to make a written applicationwhich includes the details specified in Notice 75 paragraph 6.3. to the Mineral Oils Relief Centre (MORC) in Newcastle, or BT Ops, Glasgow from mid-to late 2018.


Action to be taken by MORC / BT Ops Glasgow

When you acknowledge receipt of a written application inform the applicant that it is illegal to use rebated oil as a road fuel unless and until, they have received written approval from HMRC.

When dealing with the application, follow the procedures set out in Table P HCOTEG213755


Applications which may be allowed

Subject to policy considerations MORC / BT Ops Glasgow may authorise users in thefollowing circumstances:

If an application is allowed MORC / BT Ops Glasgow should write to the applicant granting a license in terms of the specimen licence at HCOTEG213850.


Applications which should be refused

You should refuse applications for:

    • Operators of unlicensed vehicles which are constructed to perform tasks on private premises (for example unlicensed vehicles which perform servicing or maintenance work on aircraft and travel only within the confines of an airfield) – These vehicles should be based and used on private premises and only make infrequent journeys on the public road to nearby premises for repair or maintenance of the vehicle, or its equipment. Before granting approval MORC / Bt Ops should be satisfied that journeys on public roads are occasional and consistent with the normal requirements of specialist servicing or repair work, and that the trader could not reasonably, drain the vehicle of rebated oil and replace it with diesel road fuel for journeys of short duration.
    • Newly made unlicensed vehicles – Sometimes traders will fuel newly-made unlicensed vehicles with rebated oil for movement or testing purposes on factory premises. These vehicles are subsequently used on public roads for further testing. The mileages for these journeys should be compatible with the particular company’s normal testing programme.
    • Vehicles capable of using kerosene (steam cars or certain vintage motor cars) – Some vehicles are only capable of using kerosene as fuel. Occasionally you may see vehicles owned by vehicle manufacturers or research companies in which kerosene is used on an experimental basis.
If an application is refused MORC / BT Ops Glasgow should write to the applicant in the terms of the specimen letter at [HCOTEG213800](  
The action to be taken by the Excise Helpline, by Large Business, ISBC, and by MORC / BT Ops Glasgow is contained in Table P [HCOTEG213755](  
The action to be taken by the Cumbernauld  Accounting Centre  is contained in Table Q [HCOTEG213756](  

  *   * Licensed vehicles;
      * Unlicensed vehicles hauling or carrying any objects on public roads;
      * Vehicles that are excluded from the definition of “road vehicle” but which are being used on public roads outside the scope of their vehicle excise licence;
      * Unlicensed vehicles such as tippers, skip lorries and other “site” vehicles common to construction and civil engineering sites. These vehicles although unlicensed and used mainly on site, may often be driven on public roads because of the temporary nature of the site and the requirement to move from site to site. If these vehicles fall into the categories within Schedule 1, and operate as such, they are able to use rebated oil. If they are not ‘excepted vehicles’ they must use full-rate diesel for all journeys on the public road. There is also within this category of vehicles a large number which are not specially constructed, and are capable of being used for general haulage purposes, to which the same principle applies; or
      * The addition of rebated kerosene to diesel during very cold weather as a flow improver.