Finance Bill Tracking Service 2007 | Budget 2007 | Budget Notes

BN70 Energy Products Directive : expiry of derogations

Who is likely to be affected?

1   Suppliers and users of fuel for private pleasure-flying and private pleasure-boating. Suppliers or users of waste oil as fuel, either directly after recovery or following a recycling process for waste oils.

General description of the measure

2   Following the expiry of the UK's derogations from the Energy Products Directive on 31 December 2006, from 1 November 2008 fuel used for the purposes of private pleasure flying and private pleasure boating will no longer benefit from the current reduced and exempt rates of duty.

3   Informal discussions have already begun with representatives from the boating and aviation sectors on options for implementation. Formal consultation on new regimes will be held later in the year.

4   No decision on the renewal of the derogation concerning use of waste oil as fuel has been notified by the European Commission.

Operative date

5   The changes will take effect on and after 1 November 2008.

Current law and proposed revisions

6   The Hydrocarbon Oil Duties Act 1979 (HODA) will be amended by Finance Bill 2008 to take effect from 1 November 2008.

7   Statutory instruments will be made under the relevant sections of HODA.

Further advice

8   If you have any questions about this change, please contact the National Advice Service on 0845 010 9000. Information about Budget measures is available on the HM Revenue & Customs website at