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HM Revenue and Customs Brief 17/08

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Issued 13 March 2008

Revenue & Customs Brief 17/08

Follow up and reminder to new Notice 75 ‘Fuel for Road Vehicles’, issued on 8 January 2008, on changes to some vehicle categories from 1 April 2008

Who should read this?

Users of machinery employed in road construction or maintenance, owners who hire out such equipment, Registered Dealers in Controlled Oils (RDCOs) supplying rebated gas oil - red diesel - and operators of digging machines.

Changes affecting road construction vehicles

Operators and owners who use rebated gas oil in such machinery are reminded that the old road construction vehicles category in section 12 of Schedule 1 of the Hydrocarbon Oil Duties Act 1979 [HODA] will be replaced by two new categories with effect from 1 April 2008.

The new categories are:

Section 13A Road surfacing vehicle

This is defined in HODA Schedule 1 as a vehicle which:

  • is designed and constructed to perform an operation necessary to construct or restore the surface of a road
  • does not carry any load on a public road except as is necessary for propulsion or the operation of any machinery built-in or permanently attached to the vehicle
  • has a maximum speed not exceeding 20 kilometres per hour

Section 13B Tar sprayers

These are defined in HODA Schedule 1 as a vehicle which is constructed or permanently adapted, and used, solely for spraying tar on to the road or for proceeding to and from the place where it is to be used for that purpose.

With effect from 1 April 2008 any other vehicle formerly classified as a road construction vehicle which does not fall within the new categories 13A or 13B may not use rebated gas oil - red diesel.

Digging machines – clarification of policy

A vehicle in this category is defined in Section 10 of Schedule 1 as one which:

  • is designed, constructed and used for the purpose of trench digging, or any kind of excavating or shovelling work
  • is used on public roads only for that purpose or for the purpose of proceeding to and from the place where it is to be or has been used for that purpose
  • when so proceeding does not carry any load except such as is necessary for its propulsion or equipment

In order to remove anomalies and improve clarity, from 1 April 2008 a strict and literal interpretation of the legislation will apply in the following cases:

  • We have allowed some high sided vehicles adapted to carry compressors to qualify. From 1 April a vehicle that is not designed and constructed for the purpose of digging will not qualify in this category.
  • We have allowed some pole erection vehicles to carry the poles that are to be erected. From 1 April qualifying vehicles must not carry any load - including poles - other than is necessary for their propulsion or equipment. Vehicles will be allowed to carry essential health and safety equipment.

Vehicles to which these concessions applied should not be fuelled on red diesel from 1 April 2008.

What should I do if the tanks of my vehicles which no longer qualify as excepted vehicles still contain red diesel after 31 March 2008?

The fuel tank of any such vehicle must be drained down, the system flushed out with road fuel - white diesel - and the filters changed so as to remove all traces of red diesel before that vehicle is used on or after 1 April 2008.

Further information

Queries will be dealt with by the National Advice Service (NAS) on Tel 0845 010 9000.

Copies of Notice 75 Fuel for road vehicles can also be obtained from the NAS.


About the Author

© Crown Copyright 2008.

A licence is need to reproduce this article and has been republished for educational / informational purposes only. Article reproduced by permission of HM Revenue & Customs under the terms of a Click-Use Licence. Tax briefs are updated regularly and may be out of date at time of reading.



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Article Published/Sorted/Amended on Scopulus 2008-03-24 03:40:51 in Tax Articles

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