Repayment of excise duty on heavy oil used to grow horticultural produce (Excise Notice 183)
Find out how you can claim repayment of excise duty on heavy mineral (hydrocarbon) oil used to grow certain horticultural produce.
Overview
What this notice is about
It explains how horticultural producers can claim repayment of excise duty on heavy oil used for qualifying activities.
It sets out:
- how producers must use the oil
- which horticultural activities are eligible
Who should read this notice
This notice is for growers of horticultural produce, primarily for sale.
The law covering this notice
Section 17 of the Hydrocarbon Oil Duties Act 1979, as amended. This covers repayment of excise duty on heavy oil used by horticultural producers.
The Hydrocarbon Oil (Amendment) Regulations 1981 (Statutory Instrument 1981/1134). This sets out conditions governing repayment.
This notice is not the law and nothing in this notice changes the law. It explains how we interpret the law and contains certain items which:
- are mandatory
- have legal force and supplement the law
Oil that qualifies for relief
We repay duty only on heavy hydrocarbon oil. The definition of heavy hydrocarbon oil is in the Hydrocarbon Oil Duties Act 1979. In effect this means gas oil and fuel oil.
To get the rates of duty on these oils, you can:
- view the tariff
- call the HMRC Excise helpline for rates
Find out more about call charges.
How the oil must be used
You have to satisfy us that you have used the oil:
- in the heating of:
- any building or structure
- the earth
- any other growing medium in the earth to help grow horticultural produce primarily with a view to growing that produce for sale
- to sterilise:
- the earth
- any other growing medium that is to be used to grow horticultural produce in any building or structure
How we define horticultural produce
Only the following count as horticultural produce:
(a) fruit
(b) vegetables of a kind grown for human consumption, including fungi (this does not include main crop potatoes; or peas grown for seed, for harvesting dry or for vining)
(c) flowers, pot plants and decorative foliage
(d) herbs
(e) seeds but not pea seeds, bulbs and other material for sowing or planting to:
- grow the produce described at (a) to (d)
- reproduce the seeds, bulbs or other material sown or planted
(f) trees and shrubs (not including trees grown for afforestation).
Hops are not included.
Claiming repayment
How to make a claim
You must claim on form HO49 and send the completed form with the evidence to support your claim to the Mineral Oils Relief Centre at morcrepaymentclaimsteam@hmrc.gov.uk.
Evidence you need to support a claim
Along with the form HO49, you must send receipted bills or invoices from your oil supplier. Your evidence does not need to have any certificate showing that you have paid duty, but it must show:
- the date you bought the oil
- the name of the person who sold you the oil
- how much oil you bought
- what sort of oil it was, meaning gas or fuel oil
If you cannot send us the seller’s receipt, we will accept a separate form of receipt. This must be related to a document that includes all the details in this section.
Dealers who supply oil to horticultural producers do not need to keep any special accounts.
How often you can make claims
You can make claims for heavy oil used for any period of:
- at least 2 months
- not more than 3 years
Submit your claim no later than 3 months after the end of the period you’re claiming the payment for.
The minimum amount for claims
By law, we cannot accept any claim for less than £50 duty. If necessary, defer your claim for up to 3 years until it amounts to £50 or more. It must then be sent to us no later than 3 months after the end of the claim period it covers.
How you must measure the oil
Wherever practicable, you must claim standard litres. A standard litre is a litre of oil at a temperature of 15°C. If this would be difficult for you, ask our officer about it. You may enter bulk litre figures as if they were standard litre figures:
- in certain cases on claim forms
- by agreement with our officer
Which duty rate to use
You must show the rate of hydrocarbon oil excise duty:
- actually paid
- exclusive of any special surcharge or special rebate
Our staff will make any adjustment necessary for special surcharge or special rebate before we pay the claim.
Where a Budget change in the duty rate occurs during the period of the claim, show separate amounts for:
- oil paid at pre-Budget rates
- oil paid at post-Budget rates
If you need information about duty rates, contact the HMRC Excise helpline.
Find out more about call charges.
Checks
Checks by HRMC visiting officers
The law allows our officers certain powers so that we can be sure your claim is genuine. Officers may require you to answer questions or supply information about:
- heavy oil you have received or used
- your production of horticultural produce
We may also inspect any premises or plant which you use to:
- produce horticultural produce
- store any heavy oil delivered to you, or used in the production of horticultural produce
We can also require you to:
- supply proof, in any form we require, of any statements made or information given
- determine the quantity of oil considered to have been used producing specified horticultural produce
Penalties
If you make a false or inaccurate claim, you could be liable to a penalty under Schedule 24 of Finance Act 2007. If you think you have made a mistake in your claim you should tell us as soon as possible. We may then reduce or even waive the penalty.
Ask for a review or appeal
If you disagree with a decision made by one of our officers, you may be able to:
- have a review
- appeal to an independent tribunal
If so, we will offer you a review in our decision letter and tell you about your right of appeal.
You will still be able to appeal to the independent tribunal if you:
- accept the review offer
- do not agree with the review conclusion
To find out about HMRC review and appeal procedures, view What to do if you disagree with an HMRC decision.
Your rights and obligations
Read the HMRC Charter to find out what you can expect from HMRC and what we expect from you.
Help us improve this notice
If you have any feedback about this notice, write to:
HM Revenue and Customs
Excise Fuel Duty Policy
4th Floor East
Trinity Bridge House
2 Dearmans Place
Salford
M3 5BS
Email: oils.policymail@hmrc.gov.uk
This address is not for general enquiries.
You’ll need to include the full title of this notice. Do not include any personal or financial information like your VAT number.
If you need general help with this notice or have another question, contact the HMRC Excise helpline or email the Mineral Oil Reliefs Centre at morc.exciseenquiries@hmrc.gov.uk.
Find out more about call charges.
Putting things right
If you’re unhappy with HMRC’s service, contact the person or office you’ve been dealing with and they’ll try to put things right.
If you’re still unhappy, find out how to complain to HMRC.
How HMRC uses your information
Updates to this page
Last updated 7 February 2024 + show all updates
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Contact information for the Mineral Oil Reliefs Centre has been updated.
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We have added a link to the contact details for the HMRC Mineral Oil Reliefs Centre to 'How to make a claim'.
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First published.