What is the new legislation: The Aqua Methanol (Use as Additive or Extender) (Rates of Excise Duty) Order 2016, and The Biofuels and Hydrocarbon Oil Duties (Miscellaneous Amendment) Regulations 2016.
These Regulations amend the: Biofuels and Other Fuel Substitutes (Payment of Excise Duties etc.) Regulations 2004.
Who does this affect: UK
When does this change take place: 14th November 2016
This Order prescribes the rates of excise duty charged under section 6AG of the Hydrocarbon Oil Duties Act 1979 (c.5) on aqua methanol that is set aside for use or used as an additive or extender in fuel for any engine, motor or other machinery.
This Order is related to the Biofuels and Other Fuel Substitutes (Payment of Excise Duties etc.) Regulations 2004 (S.I. 2004/2065) (“the 2004 Regulations”) which provides a framework for the payment of excise duty at the rates set by this Order and the Other Fuel Substitutes (Rates of Excise Duty etc.) Order 1995 (S.I. 1995/2716).
Where aqua methanol is set aside for use or used as an additive or extender in fuel for any engine, motor or other machinery, Article 4 prescribes the rate of duty that is due. This is generally determined by the applicable rate for the fuel in relation to which the aqua methanol has been set aside for use or used as an additive or extender to as evidenced by an entry in the motor fuels record which is governed by the 2004 Regulations. Where there is no entry in the motor fuels record, the rate is the rate applicable to light oil other than unleaded petrol.
A Tax Information and Impact Note (TIIN) covering this instrument was published in 16th March 2016 alongside draft clauses of the Finance Bill 2016 and this is available on the website at https:// www.gov.uk/government/collections/tax-information-and-impact-notes-tiins. It remains an accurate summary of the impacts that apply to this instrument.