Finance Act 2016

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Amendment of Chapter 1 of Part 2 of Finance Act 1999 (mineral oil tax)

38. (1) Chapter 1 of Part 2 of the Finance Act 1999 is amended—

(a) in section 94(1) —

(i) by substituting the following for the definition of “additive”:

“‘additive’ means any product (other than hydrocarbon oil, liquefied petroleum gas, substitute fuel or vehicle gas) which may be added to—

(a) hydrocarbon oil,

(b) liquefied petroleum gas,

(c) substitute fuel, or

(d) vehicle gas,

as an extender or for the purpose of improving performance or for any other purpose, and cognate words shall be construed accordingly;”,

(ii) by substituting the following for the definition of “liquefied petroleum gas”:

“‘liquefied petroleum gas’ means petroleum gases and other gaseous hydrocarbons falling within CN codes 2711 12 11 to 2711 19 00;”,

(iii) by substituting the following for the definition of “mineral oil”:

“‘mineral oil’ means hydrocarbon oil, liquefied petroleum gas, vehicle gas, substitute fuel and additives;”,

(iv) in the definition of “hydrocarbon oil” by substituting “include vehicle gas or any oil” for “include any oil”,

(v) by inserting the following definitions:

“‘CN code’ means a Community subdivision to the combined nomenclature of the European Communities referred to in Article 1 of Council Regulation (EEC) No. 2658/87 of 23 July 1987¹¹ as amended by Commission Regulation (EC) No. 2031/2001 of 6 August 2001¹² ;

‘natural gas’ means natural gas falling within CN codes 2711 11 00 and 2711 21 00;

‘vehicle biogas’ means vehicle gas obtained solely from biomass;

‘vehicle gas’ means gas other than liquefied petroleum gas used or intended for use as vehicle fuel;

‘vehicle gas accounting period’ means a period of two months or such other period as the Commissioners may prescribe for the purposes of the returns and payment of mineral oil tax under section 95E;

‘vehicle gas dispenser’ means a person who, at a premises or place in the State, receives vehicle gas for the purpose of supplying that vehicle gas to the fuel tank or standard tank of a vehicle and includes a person who receives vehicle gas from, or supplies vehicle gas to themselves for that purpose;

‘vehicle gas supplier’ means a person who supplies vehicle gas to a vehicle gas dispenser;”,

and

(vi) by deleting the definition of “methane”,

(b) in section 94(2)(b)(ii) by substituting “oil or gas” for “oil”,

(c) in section 95—

(i) by substituting the following subsection for subsection (1):

“(1) Subject to the provisions of this Chapter, and any regulations made under it, a duty of excise, to be known as mineral oil tax, shall be charged, levied and paid—

(a) on all mineral oil (other than vehicle gas)—

(i) released for consumption in the State, or

(ii) released for consumption in another Member State, and brought into the State,

and

(b) on all vehicle gas supplied to a vehicle gas dispenser.”,

(ii) by substituting the following subsection for subsection (2):

“(2) Liability to mineral oil tax shall arise—

(a) in the case of mineral oil other than vehicle gas, at the time when that mineral oil is—

(i) released for consumption in the State, or

(ii) following release for consumption in another Member State, brought into the State,

and

(b) in the case of vehicle gas, at the time when that vehicle gas is supplied to a vehicle gas dispenser.”,

and

(iii) by inserting the following subsection after subsection (2):

“(2A) For the purposes of subsection (2)(b), the time the vehicle gas is supplied to a vehicle gas dispenser is the time at which the vehicle gas is recorded at the meter referred to in section 95B as having been received by that vehicle gas dispenser.”,

(d) by inserting the following sections after section 95:

“Supply of vehicle gas

95B. (1) A vehicle gas supplier shall not supply any vehicle gas to a vehicle gas dispenser’s premises or place unless the vehicle gas dispenser has, at that premises or place, a meter that has been fitted by the transmission system operator for the exclusive purpose of measuring and recording the quantity of vehicle gas supplied to that vehicle gas dispenser.

(2) A vehicle gas dispenser shall not receive any vehicle gas, or permit any vehicle gas to be received, at that vehicle gas dispenser’s premises or place unless—

(a) the vehicle gas dispenser has, at that premises or place, a meter that has been fitted by the transmission system operator for the exclusive purpose of measuring and recording the quantity of vehicle gas supplied to that vehicle gas dispenser, and

(b) the vehicle gas received at that premises or place is measured and recorded by a meter referred to in paragraph (a).

(3) In this section, ‘meter’ and ‘transmission system operator’ have the same meanings as they have in section 15 of the Energy (Miscellaneous Provisions) Act 1995 .

Liability to pay mineral oil tax on vehicle gas

95C. (1) Subject to subsection (2), a vehicle gas supplier shall be accountable for and liable to pay mineral oil tax on the vehicle gas supplied to a vehicle gas dispenser by that supplier.

(2) A vehicle gas dispenser shall be liable for any deficiency in the amount of tax paid on a supply of vehicle gas to that vehicle gas dispenser, where the deficiency has resulted from false or misleading information furnished by that vehicle gas dispenser to the vehicle gas supplier, and no such liability for the deficiency shall attach to that vehicle gas supplier.

Registration of vehicle gas suppliers

95D. A vehicle gas supplier shall register with the Commissioners in accordance with such procedures as the Commissioners may prescribe or otherwise impose.

Returns and payment by vehicle gas suppliers

95E. (1) For the purposes of section 95C, a vehicle gas supplier shall within one month of the end of a vehicle gas accounting period, furnish to an officer, in such form as the Commissioners may require, a return showing the quantity of vehicle gas supplied by that vehicle gas supplier during that accounting period to vehicle gas dispensers.

(2) The vehicle gas supplier shall, in accordance with the return under subsection (1) and by the time that return is due, pay the amount of mineral oil tax due in respect of the vehicle gas supplied by that vehicle gas supplier during the accounting period concerned.

(3) Any vehicle gas supplier that is not established in the State shall make such arrangements with the Commissioners as the Commissioners may require for the payment of the tax and accounting for it, and those arrangements shall include the appointment of a competent person in the State to give effect to them.”,

(e) in section 96—

(i) in subsection (1B), by substituting “mineral oil, other than vehicle gas,” for “mineral oil” where it first occurs,

(ii) by inserting the following subsection after subsection (1B):

“(1C) The rate of tax per megawatt hour specified for vehicle gas in Schedule 2A is in proportion to the emissions for natural gas and is determined by the formula—

EF x A x C

where—

EF is the carbon emission factor of natural gas expressed in kilograms of CO2 per terajoule,

A is the amount, €0.02, to be charged per kilogram of CO2 emitted, and

C is 0.0036, the number of terajoules per megawatt hour.”,

and

(iii) in subsection (5), by substituting “mineral oil tax on mineral oil other than vehicle gas” for “the carbon charge”,

(f) in section 100, by inserting the following subsection after subsection (5):

“(5A) Subject to such conditions as the Commissioners may prescribe or otherwise impose, a relief from the carbon charge shall apply—

(a) to any vehicle gas that is shown to the satisfaction of the Commissioners to be vehicle biogas, and

(b) where vehicle biogas has been mixed or blended with any other vehicle gas, to the vehicle biogas content of any such mixture or blend.”,

(g) in section 101(1), by substituting “(other than additives or vehicle gas)” for “(other than additives)”,

(h) in section 101B(1), by substituting “mineral oil, other than vehicle gas, sold” for “mineral oil sold”,

(i) in section 102(1)(d), by substituting “(other than additives or vehicle gas)” for “(other than additives)”,

(j) in section 104(2), by substituting the following for paragraph (g):

“(g) require a person who is an owner of or who is for the time being in charge of any vehicle constructed or adapted to use liquefied petroleum gas, vehicle gas or substitute fuel as a propellant in that vehicle to give such information, as may be specified, in relation to the supply or use of such mineral oil;”,

(k) by substituting the following for Schedule 2:

“SCHEDULE 2

Rates of Mineral Oil Tax

”,

and

(l) by substituting the following for Schedule 2A:

“SCHEDULE 2A

Carbon Charge

”.

(2) Sections 55 and 56 of the Finance Act 2014 are repealed.

(3) This section shall come into operation on such day or days as the Minister for Finance may by order or orders appoint and different days may be appointed for different purposes or different provisions.

¹¹OJ No. L256, 7.9.1987, p.1

¹²OJ No. L279, 23.10.2001, p.1