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HMRC internal manual

Oils Technical Manual

HM Revenue & Customs
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Operations in warehouse: Additives: Additives: Addition to oil in duty suspension

Traders may wish to add substances to oil in duty-suspended installations as received or after preliminary mixing with a small quantity of oil. No objection need be raised provided that:

  • Duty is paid on the full quantity of oil (including additives) delivered for home use.
  • Any substance to be added to gas oil or kerosene does not impede the identification of prescribed markers (you may need advice from LGC on this);
  • No credit of duty will be claimed on duty-paid oil contained in or mixed with the additives;
  • Where essential to revenue control, stocks of additive are segregated in storage; and
  • Adequate records are maintained.

There is no objection to adding the additive or the preliminary mixture;

  • In the storage tank; or
  • By feeding into the delivery line to the loading gantry.

Liquid additives for engine use are produced and transferred on duty-suspension terms; this facilitates the industry and assists the duty on them to be charged at the same rate as the fuel to which they are added prior to the excise duty point.

In the case of additives for gas oil and kerosene, you may wish to send the application and, if available, a sample of the substance to LGC for advice. If the advice is unfavourable, the trader is to be invited to make alternative proposals.

If oil for preliminary mixing is drawn from duty-suspended stocks, duty is not to be charged at the time of drawing but is to be included in the charge on the treated oil when this is delivered for home use.