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HMRC internal manual

Oils Technical Manual

Receipts into Warehouse: Receipts from customers’ tank cleaning services: general

Some oil companies use duty paid oil to flush tanks when providing the following services:

  • Periodic cleaning of customers’ fuel oil tanks to remove sludge, rust and contaminated oil; and
  • Flushing of customers’ lubricating systems and lines

Unused contaminated oil and sludge removed from customers’ tanks and any oil used for cleaning those tanks may be returned for treatment under HCOTEG71750. Note particularly the restriction in respect of oil containing markers. Credit of duty may be allowed on the duty-paid oil content, within the restrictions of HCOTEG72000.

You should refuse duty credit on oil which has been put to normal use as oil, or which is unused stock in a usable condition, on the grounds that such oil does not satisfy the requirements of Hydrocarbon Oil Duties Act 1979 Section 20.