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HM Revenue and Customs Brief 4/15 - introduction of a new rebated fuel marker


HM Revenue and Customs -Tax Authorities

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Issued Date issued 19 March 2015


On 1 April 2015, the UK is introducing a new chemical marker for rebated fuel. Markers are used in off-road diesel (sometimes known as red diesel in the UK) and kerosene, primarily used as heating oil. The new marker will be used in addition to existing ones and will be added in minute quantities and should not be noticeable to users.

HM Revenue and Customs (HMRC) has been working with the oil industry and fuel suppliers for over a year to ensure a smooth introduction. Users of rebated fuel should not notice any disruptions to their supplies.

Who should read this Brief

This Brief should be read by:

  • oil refiners
  • registered remote marking businesses
  • oil storage businesses
  • manufacturers of engines, heating systems and other equipment
  • manufacturers of vehicles and machinery using rebated fuel
  • users of rebated fuel including the agricultural and construction industries
  • the rail and haulage industry
  • the maritime sector
  • heating oil consumers

Background - new chemical marker for rebated fuel

The government announced in February 2014 the introduction of a new product for marking rebated fuels. This is a significant step forward in the battle against criminals who ‘launder’ rebated fuel and sell it on for road use at a profit. The new marker represents a significant improvement on the existing mix. The oil industry has started adding the new fuel marker ahead of 1 April 2015.

HMRC set up an Implementation Working Group shortly after the announcement. This includes representatives of the oil industry and those sectors that may be affected by the change. The Group has worked with HMRC to develop our implementation plans as well as producing and delivering information to their members.

Next steps - what action should be taken

Rebated fuel use is limited to specific circumstances and is primarily used in the agricultural and construction sectors and for domestic heating. It is marked with dye and chemical markers, to ensure use for any other purpose can be detected.

Producers and suppliers of rebated fuel must ensure that, from 1 April 2015, any supply of rebated fuel removed from warehouse for home use contains the new mix of markers as set out in legislation.

Consumers are unlikely to need to do anything. Off-road diesel will remain red and fuel containing the new mix of markers can be added to existing stocks of rebated fuel. Further information should be obtained from your suppliers.

Further information

New marker to tackle fuel fraud

About the Author

© Crown Copyright 2015.

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 2015-06-02 17:17:04 in Tax Articles

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