If a vehicle was found by HMRC to be illegally using ‘red diesel’ on the road, then the vehicle may be seized by HMRC.
Under HMRC’s previous policy, a vehicle would usually be restored to the owner if:
- payment of a restoration fee was made, and
- on condition that the fuel was changed at the first safe opportunity.
That restoration fee was made up of:
- An amount based on regulatory fixed penalties of £250, for unlawfully taking rebated fuel into a road vehicle and a further £250 for unlawfully using rebated fuel in a road vehicle;
- An amount which is equal to the duty and VAT which should have been paid on the quantity of fuel found in the tank;
- An amount to cover the storage and removal costs.
Changes
From 1 November 2012, the duty and VAT element of the restoration fee will be based on the total litre capacity of a vehicle’s fuel tank, not the quantity of illicit fuel remaining in the vehicle’s fuel tanks.