Finance Act 2010

• Permanent Page URL

PART 3

Customs and Excise

Chapter 1

Mineral Oil Tax Carbon Charge

Mineral oil tax carbon charge.

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

(a) in subsection (1) of section 94—

(i) by inserting the following definition after the definition of “biomass”:

“ ‘CO₂’ means carbon dioxide;”,

(ii) by inserting the following definition after the definition of “dumper”:

“ ‘emissions’ means the release, on combustion of mineral oil, of CO₂;”,

(b) with effect as on and from 10 December 2009 by substituting the following for Schedule 2 to that Act (as amended by section 15(a) of the Finance Act 2009 ):

“SCHEDULE 2

Rates of Mineral Oil Tax

”,

(c) with effect as on and from 10 December 2009 by inserting the following after Schedule 2:

“SCHEDULE 2A

Carbon Charge

”,

(d) with effect as on and from 1 May 2010 by substituting the following for Schedule 2 (as amended by paragraph (b)):

“SCHEDULE 2

Rates of Mineral Oil Tax

”,

(e) with effect as on and from 1 May 2010 by substituting the following for Schedule 2A (inserted by paragraph (c)):

“SCHEDULE 2A

Carbon Charge

”,

(f) in section 96 by inserting the following after subsection (1):

“(1A) Where a rate is specified in Schedule 2A for any description of mineral oil, that rate, referred to in this Chapter as the ‘carbon charge’, is included in the rate of tax specified in Schedule 2 for that description of mineral oil.

(1B) The rate per 1,000 litres specified for each description of mineral oil in Schedule 2A is in proportion to the emissions for the description of mineral oil concerned, and is determined by the formula—

NCV × EF × A

where—

NCV is the net calorific value of the description of mineral oil concerned expressed in terajoules per 1,000 litres,

EF is the carbon emission factor of the description of mineral oil concerned expressed in tonnes of CO₂ per terajoule,

A is the amount, €15, to be charged per tonne of CO₂ emitted.”,

(g) in section 96 by inserting the following after subsection (4):

“(5) The Commissioners may, subject to such conditions for securing mineral oil tax as they may prescribe or otherwise impose, permit payment of the carbon charge to be deferred to a day not later than the 15th day of the month succeeding the month in which the mineral oil tax is payable.”,

(h) in subsection (1) of section 98 by substituting “at a rate, for heavy oil of €43.60 per 1,000 litres, and for liquefied petroleum gas of €30.22 per 1,000 litres” for “at the rate of €5.58 per 1,000 litres on such gas or oil”,

(i) in section 100 by inserting the following after subsection (1):

“(1A) (a) Without prejudice to any other relief that may apply and subject to paragraphs (b) and (c), a relief from the carbon charge shall apply to biofuel.

(b) From 10 December 2009 until 30 June 2010, where biofuel has been mixed or blended with any other mineral oil, the relief under paragraph (a) shall only apply where the biofuel content of the mixture or blend exceeds 10 per cent of the total volume of the mixture or blend.

(c) From 1 July 2010, where biofuel has been mixed or blended with any other mineral oil, the relief under paragraph (a) shall apply to the biofuel content of any such mixture or blend.

(1B) Without prejudice to any other relief that may apply, a relief from the carbon charge shall apply to any mineral oil which is intended for use or which has been used in an installation that is covered by a greenhouse gas emissions permit.”.

(2) (a) Subject to paragraph (b), and to paragraphs (b) and (c) of subsection (1), this section has effect from 1 May 2010.

(b) Subsections (1A) (inserted by subsection (1)(f)) and (5) (inserted by subsection (1)(g)) of section 96 of the Finance Act 1999 , and subsection (1A) (inserted by subsection (1)(i)) of section 100 of that Act have effect from 10 December 2009.