Rural Fuel Duty Relief Scheme (Notice 2001)
Find out about the Rural Fuel Duty Relief Scheme for retailers of fuel and areas eligible for the relief.
The Rural Fuel Duty Relief gives support to motorists by compensating fuel retailers in some rural areas with high road fuel prices. Other fuel users of full duty petrol and diesel can also claim this relief.
The rural areas were chosen because, before the scheme was introduced:
- pump prices in those areas were much higher than the UK average
- the remoteness of those areas leads to high fuel transport costs from refinery to filling station
- relatively low sales means that these fuel retailers cannot benefit from bulk discounts on their fuel purchases
The rebate gives a 5 pence per litre reduction to fuel retailers in the specified rural areas on the standard UK rate of excise duty for unleaded petrol and for diesel sold for use other than in excepted vehicles.
A rebate cannot be claimed for rebated fuel sold for excepted machine use (for example, boats and agricultural vehicles). Fuel retailers must begin passing on the 5 pence per litre reduction 60 days after registration at the latest. This is to help fuel users in remote areas where the cost of petrol and diesel is often higher.
From 1 April 2015 changes were made to extend the relief to more specified rural areas. HMRC can consider late claims, where there is reasonable cause.
From 1 April 2022 changes were made to extend the relief to sales of fully taxed fuel used for machines no longer entitled to use rebated fuels.
About this notice
This notice contains information:
- about the Rural Fuel Duty Relief Scheme for retailers of fuel
- on the specific rural areas that are eligible for the relief
- on the registration process and how claims could be made
Who should read this notice
Retailers of unleaded petrol and fully duty-paid diesel sold as fuel within the areas shown in the paragraph about how the relief scheme works.
Law covered in this notice
The UK laws that are covered in this notice are:
- The Hydrocarbon Oil Duties Act 1979
- The Hydrocarbon Oil and Biofuels (Road Fuel in Defined Areas) (Reliefs) Regulations 2011
- The Hydrocarbon Oil and Biofuels (Road Fuel in Defined Areas) (Reliefs) (Amendment) Regulations 2015
Rural Fuel Duty Relief
Who can claim relief
You can claim relief if you are a retailer of fuel (unleaded petrol and fully duty-paid diesel) in the specified areas. You are not eligible to register if you buy fuel in bulk for example, for your own business use.
How the relief scheme works
You can register with HMRC to claim 5 pence per litre relief on fuel you purchase if you are a retailer of qualifying fuel within the areas of the:
- Inner and Outer Hebrides
- Northern Isles
- Islands in the Clyde
- Isles of Scilly
- post town of Hawes (Northern Yorkshire)
- post code districts in:
- England — EX35, LA17, NE48
- Scotland — IV14, IV21, IV22, IV26, IV27, IV54, KW12, PA38, PA80, PH19, PH23, PH36, PH41
The relief is only allowed for fully taxed fuel and retailers in the specified areas and they only need to give the price reduction and claim the relief where fuel has been used other than for an excepted machine.
The start date on the scheme is the date of approval on your registration form. You can only start to make a claim when you are registered. Retrospective claims cannot be made for any period.
Claims must be made on a monthly basis. You have 60 days following your registration to reduce the cost of every litre of fully taxed fuel sold by the equivalent amount of the relief claimed.
The 60-day period
This is the 60-day period after we confirm you have registered as a retailer and are not required to pass on the relief.
This introductory period is designed to help you avoid initial cash flow problems. By law, retailers must pass on the full relief to consumers once this introductory 60-day period has come to an end. You can begin to pass on the relief to consumers before the 60 days are over, if you want to.
The 60-day period makes sure customers in the eligible areas benefit from the reduction in fuel duty.
How to register
To register you need to complete a registration to claim Fuel Duty relief.
A separate registration is needed for each retail premises.
We will write to confirm that you are registered as a qualified claimant.
You must also tell us if, at some later date, you want to do any of the following:
- add a new premises that is situated within any of the areas, postcodes or post town covered by the relief
- stop trading as a retail fuel site within these postcodes
- sell a business premises that is registered in this scheme to another retail operator
How to claim relief
To claim relief you must:
- register with HMRC to claim the relief — we will not accept a claim from any retailer who is not registered
- complete form Claim Fuel Duty Relief (HO81) — claim periods are based on a calendar month and you can only submit one claim per month
- sign and date the form and declare that the information provided on it is true and complete
- send your claims in time so that it is received by HMRC no later than 30 days after the end of the month to which it relates — a claim will not normally be paid if it is received after the 30-day period
Information needed on the claim form
You will need to give the following details of the fuel you have bought and which you are claiming relief for:
- date of the purchase
- name of the supplier
- period of claim
- reference of the purchase, such as invoice number
- total volume in litres of unleaded petrol purchased in the period
- total volume in litres of full duty-paid diesel purchased in the period
- amount of the claim
How the relief is calculated
The following are calculations to work out the amount you can claim of volume in litres of:
- unleaded petrol you purchased × 5 pence = A
- full duty-paid diesel you purchased × 5 pence = B
Add A and B together to work out the total amount of your claim.
Records you must keep
You must keep:
- evidence of all your purchases, such as invoices for fuel on which your relief has been claimed
- your normal business records and produce them to HMRC if asked to do so
- evidence that the 5 pence per litre saving has been passed onto your customers
Evidence for your relief claim
You do not need to send evidence for your claim with your return but you should keep it as part of your records. HMRC will contact you if they want to verify your claim.
Circumstances HMRC accepts relief claims submitted later than 30-day period
Late claims will only be accepted in exceptional circumstances — genuine mistakes, honesty and acting in good faith are not accepted as a reasonable cause for submitting the claims late (such as, outside the 30-day period).
You must send your returns as soon as possible after your reasonable cause is resolved.
How long it will take to process your claim
If we are satisfied with the evidence sent, we will aim to process your claim within 30 days from its receipt.
HMRC can make payment at a later date if additional evidence or information has been asked for in connection with the claim.
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
Alternatively, you can email oils.policymail@hmrc.gov.uk.
You’ll need to include the full title of this notice. Do not include any personal or financial information like your VAT or company reference number.
This address is not for general enquiries.
If you need help with this notice or have another question, contact the HMRC Excise helpline on 0300 200 3700 or email the Mineral Oil Reliefs Centre at morcrepaymentclaimsteam@hmrc.gov.uk.
Find out more about call charges.
Putting things right
If you are 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 8 February 2024 + show all updates
-
Contact information for the Mineral Oil Reliefs Centre and the HMRC Excise helpline has been updated.
-
This relief has been extended to sales of fully taxed fuel used by machines not entitled to use rebated fuels.
-
This guidance has been updated as the Brexit transition period has ended.
-
First published.