HM Revenue and Customs Brief 07/14
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Issued 03 February 2014
Excise duty: Registered Dealers in Controlled Oils Scheme
Purpose of this brief
This brief gives information about changes to the RDCO scheme,
in particular changes to the approval process and the obligations of
Who needs to read this?
Anyone who handles, sells or deals, or intends to handle, sell
or deal in controlled oils.
The RDCO scheme supports the UK Oils Strategy with the aim of
identifying and tackling commercial oils fraud. Our aim under the
scheme is to work in partnership with honest distributors to improve
our control of the supply chain for controlled oils and to protect the
Controlled oils are defined as:
- marked rebated gas oil (red diesel) including ultra low
sulphur gas oil
- marked rebated kerosene (paraffin, burning oil, etc.), and
- aviation turbine fuel (Avtur)
Important aspects of the RDCO scheme are the approval process
and the obligations of the RDCO. It is essential that HMRC have robust
systems in place to ensure only legitimate businesses are authorised to
deal in controlled oil, and that businesses understand their
obligations under the scheme.
What are the changes?
The approval process has been updated to include a fit and
proper test which HMRC will apply to determine whether a person is
responsible and qualified to hold an approval to deal in controlled
oils. There is also a new requirement to submit a business plan which
should accompany the RDCO application form. See Section 4 of Notice 192
for further details.
Changes have also been made to the obligations placed upon the
RDCO (previously called duty of care). These changes have been made to
clarify the legitimate uses which controlled oil can be put to and to
reinforce the RDCO's obligations when supplying controlled oil,
including marketing of controlled oils and the appropriate detail on
delivery notes. See section 5 of N192 for further details.
In addition, changes to Section 8 have been made to clarify the action
we will take in respect of non-compliance with the scheme.
We have also made several minor changes to the notice to
Who will be affected?
The change will affect anyone who requires approval as an RDCO
and also existing RDCOs who notify us of significant changes in their
Why are these changes being made?
HMRC recently reviewed the UK Oils Strategy and
recommendations were made to introduce improvements which would enhance
our control of the RDCO scheme.
What legislation is being changed or introduced?
There are no changes to existing legislation and no new
legislation is being introduced.
The changes come into effect on 01 February 2014.
Further information relating to the RDCO scheme can be found
Notice 192: Registered Dealers in Controlled Oil Scheme
About the Author
© Crown Copyright 2014.
A licence is needed to reproduce this article and has been republished
for educational / informational purposes only. Article reproduced by
permission of HM Revenue & Customs.
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Article Published/Sorted/Amended on Scopulus 2014-02-05 10:11:21 in Tax Articles