HM Revenue and Customs Brief40/11
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Issued 9 December 2011
Excise Duty: Rural Fuel Duty relief scheme for road fuel on
the Inner and Outer Hebrides, the Northern Isles, the Islands of the
Clyde and the Isles of Scilly
Purpose of this Brief
This Brief gives information about a new Rural Fuel Duty
relief scheme for retailers of road fuel on the Inner and Outer
Hebrides, the Northern Isles, the Islands of the Clyde and the Isles of
Scilly which is being introduced on 1 January 2012.
Retailers of road fuel within these areas will be eligible to
register with HM Revenue & Customs (HMRC) to claim back five
pence per litre (ppl) relief on unleaded petrol and diesel for retail
sale within the eligible areas.
Who needs to read this?
Retailers of unleaded petrol and diesel sold as road fuel
within the areas of the Inner and Outer Hebrides, the Northern Isles,
the Islands of the Clyde and the Isles of Scilly.
The price of fuel in the Scottish islands is around 10 ppl
higher than the average for the rest of the UK. In the Scilly Isles it
is even higher at around 25 ppl above the UK average.
The higher price of fuel on the islands is due mainly to the
high cost of selling fuel in these regions. This is because of higher
transport and distribution costs for delivering fuel to the islands and
the low volume of fuel sold, meaning that fuel retailers' fixed costs
need to be spread over a lower volume of sales.
The five ppl relief will provide some help to consumers in the
areas concerned who are faced with high costs of petrol and diesel.
A Council Decision on 24 November 2011 allowed a derogation
from the Energy Products Directive (2003/96) in order to introduce the
Who is eligible to claim relief?
You can claim relief if you are a retailer of road fuel
(unleaded petrol and diesel) within the Inner and Outer Hebrides, the
Northern Isles, the Islands of the Clyde and the Isles of Scilly.
You are not eligible to register if you purchase fuel in bulk,
for example, for your own business use.
How does the relief scheme work?
If you are a retailer of road fuel within the areas concerned
you can register with HMRC to claim five ppl relief on fuel you
purchase on or after 1 January 2012 for onward retail sale in the Inner
and Outer Hebrides, the Northern Isles, the Islands of the Clyde and
the Isles of Scilly. You can make claims on a monthly basis.
You will have 60 days following your registration to reduce
the cost of every litre of road fuel sold by the equivalent amount of
the relief claimed. This is so that all consumers in the areas
concerned benefit from the reduction in fuel duty.
The 60 day period during which retailers are not required to
pass on the relief is designed to help avoid initial cash flow
How do I register?
To register you need to complete form HO80: Registration to
claim fuel duty relief (Scottish Islands and the Isles of Scilly),
which is available on the HMRC website by following this link HO80.
The form can be completed electronically but must be printed and
returned by post to:
HM Revenue & Customs
Mineral Oils Relief Centre
Benton Park View
You can also phone the Excise and Customs Helpline Tel 0845
010 9000 and ask them to send a form for you to complete and return.
A separate registration is needed for each retail premises.
HMRC will write to confirm that you are registered as a
How do I claim the relief?
You need to register with HMRC to claim relief. HMRC will not
accept a claim from any retailer who is not registered.
To claim the relief you need to complete form HO81: Claim for
duty relief (Scottish Islands and Isles of Scilly), which will be
available on the HMRC website in January 2012, in time for your first
monthly claim. You will also be able to obtain a copy from the Excise
and Customs Helpline Tel 0845 010 9000.
Claim periods will be based on a calendar month. You can only
submit one claim per month.
HMRC will pay the relief claimed within 30 days of receiving
What information will be required on the claim form?
You will need to provide the following details of the fuel you
have purchased and on which you are claiming relief:
- the date of the purchase
- the name of the supplier
- period of claim
- the reference of the purchase, such as invoice number
- total volume in litres of unleaded petrol purchased in the
- total volume in litres of diesel purchased in the period
- the amount of the claim
How is the relief calculated?
The amount you can claim is:
- the volume in litres of unleaded petrol you purchased ×
five pence = A
- the volume in litres of diesel you purchased × five pence
Add A and B together to work out the total amount of your
What records must I keep?
You must keep evidence of all your purchases, such as invoices
of road fuel on which your relief has been claimed. You will also need
to keep your normal business records and produce them to HMRC if asked
to do so.
Do I need to submit evidence for my relief claim with my
No. Please keep your documentary evidence as part of your
records. HMRC will contact you if they wish to verify your claim.
How long will the relief scheme last?
The relief scheme is a pilot scheme which will be evaluated
over a period of time to ensure that it is working effectively and that
the price of fuel in the areas concerned has reduced.
This relief scheme is being implemented under the State Aid
General Block Exemption Regulation No 800/2008.
About the Author
© Crown Copyright 2011.
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 2011-12-10 13:45:25 in Tax Articles