HMRC increases the Restoration Fee Following Vehicle Seizures for Red Diesel Offences

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:

  1. payment of a restoration fee was made, and
  2. 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.

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.

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