This order extends the Excise Duties (Surcharges or Rebates) (Hydrocarbon Oils etc.) Order 2022 until March 22, 2026.
The 2022 Order adjusts excise duty liabilities and rebates for hydrocarbon oils.
This extension ensures continued regulatory stability and predictable tax revenue while maintaining existing legal frameworks.
It builds upon previous continuation orders issued in 2023 and 2024.
Arguments For
Continued Regulatory Stability: Extending the order provides continued certainty for businesses regarding excise duty liabilities and rebates related to hydrocarbon oils.
Administrative Efficiency: Avoiding the need to create a new order each year simplifies administrative processes for both government and businesses involved in the hydrocarbon oil sector.
Predictable Tax Revenue: The continuation ensures a predictable stream of tax revenue for the government.
Alignment with Existing Regulations: The order maintains existing excise duty adjustments as defined by the 1979 Act.
Arguments Against
Potential for Unforeseen Circumstances: A prolonged extension without review could fail to address unforeseen economic or environmental changes that might necessitate adjustments to excise duty.
Lack of Flexibility: The fixed extension period might not adapt to future needs or shifts in policy.
Regulatory Capture: The continued application of the order without review could potentially lead to regulatory capture by industry interests.
Missed Opportunities for Reform: A fixed extension could delay needed updates to excise duty policies.
- Citation and commencement This Order may be cited as the Excise Duties (Surcharges or Rebates) (Hydrocarbon Oils etc.) Order 2022 (Continuation) Order 2025 and comes into force on 23rd March 2025.
This section establishes the order's official title as the "Excise Duties (Surcharges or Rebates) (Hydrocarbon Oils etc.) Order 2022 (Continuation) Order 2025" and sets its effective date as March 23, 2025.
- Continuation of the Excise Duties (Surcharges or Rebates) (Hydrocarbon Oils etc.) Order 2022 The Excise Duties (Surcharges or Rebates) (Hydrocarbon Oils etc.) Order 2022 continues in force until the end of 22nd March 2026, instead of expiring in accordance with section 2(2) of the Excise Duties (Surcharges or Rebates) Act 1979, article 2 of the Excise Duties (Surcharges or Rebates) (Hydrocarbon Oils etc.) Order 2022 (Continuation) Order 2023, or article 2 of the Excise Duties (Surcharges or Rebates) (Hydrocarbon Oils etc.) Order 2022 (Continuation) Order 2024.
This section extends the life of the Excise Duties (Surcharges or Rebates) (Hydrocarbon Oils etc.) Order 2022.
The order, which manages adjustments to excise duty and rebates, will now remain in effect until March 22, 2026, instead of expiring earlier as originally scheduled.
It overrides previous continuation orders from 2023 and 2024.
Explanatory Note (This note is not part of the Order) This Order provides for the continuation of the Excise (Surcharges or Rebates) (Hydrocarbon Oils etc.) Order 2022 (“the 2022 Order”) until the end of 22nd March 2026. The 2022 Order provides for adjustments of liabilities to excise duty and rights of rebate in respect of excise duty in accordance with sections 1(2) and 2(3) of the Excise Duties (Surcharges or Rebates) Act 1979 (surcharges or rebates of amounts due for excise duties). Section 2(2) of that Act (which applies in respect of orders under section 1 – see section 2(1)) provides that an order shall cease to be in force at the expiration of a period of one year from the date on which it takes effect, unless continued in force by a further order. The 2022 Order was continued in force by S.I. 2023/329 and S.I. 2024/300. A Tax Information and Impact Note covering this instrument will be published on the website at https://www.gov.uk/government/collections/tax-information-and-impact-notes-tiins.
This explanatory note (which is not legally binding) clarifies the order's purpose, which is to extend the 2022 Order.
It explains that the 2022 Order adjusts excise duty and rebate amounts and that section 2(2) of the 1979 Act typically limits the order to a single year unless continued.
It also references previous continuation orders and indicates where to find further tax information.
Related
The Merchant Shipping (General Lighthouse Authorities) (Increase of Borrowing Limit) Order 2026
The Order increased the statutory borrowing limit for General Lighthouse Authorities under the Merchant Shipping Act 1995 to £166 million, effective March 31, 2026.
Read MoreThe Digital Markets, Competition and Consumers Act 2024 (Alternative Dispute Resolution) (Consequential Amendments) Regulations 2026
The Regulations amended primary and secondary UK legislation to remove references to the revoked 2015 Alternative Dispute Resolution Regulations and substitute them with provisions from the Digital Markets, Competition and Consumers Act 2024.
Read MoreThe Carbon Capture Utilisation and Storage and Offshore Hydrogen Production (Miscellaneous Amendments) Regulations 2026
The Regulations amended six existing sets of health and safety legislation to explicitly include definitions, licensing rules, operator responsibilities, and safety case requirements for Carbon Capture, Utilisation and Storage (CCUS) and offshore hydrogen production activities.
Read MoreThe Climate Change Levy (Fuel Use and Recycling Processes) (Amendment) Regulations 2026
The regulations amended the 2005 Climate Change Levy Regulations to specify electricity used in hydrogen electrolysis and natural gas used in sodium bicarbonate production as non-fuel uses exempt from the levy.
Read More