UK Aviation Fuel Duty Clawback: How to Claim Rebates

This article is specific to a UK audience.

Duty clawback: a little used trick when flying helicopters overseas

In the United Kingdom, when you travel out of the country in an Avgas-powered British registered civil aircraft, you are eligible to receive a rebate of the fuel duty paid on the contents of the tank. The rebate is given at the point that the international flight commenced. This rebate applies even if you don’t use the fuel during the flight. To claim this rebate, you need to use the online service. This service is for claiming drawback on duty paid on oils used as fuel on foreign-going aircraft​​​.

HMRC provide guidance in Excise Notice 554. When submitting a claim for duty drawback, there are some key points to consider.

Excise Duty rates

Avgas: £0.3629/litre and JetA1 (Kerosene category): £0.1018/litre¹.

For an R44, a full tank of 185 litres includes £67.14p of duty, all of which can potentially be reclaimed on a trip to France. For an R66 long-range, a full tank of 400 litres includes £40.72p. JetA1 duty is paid by a submission so the benefit occurs by not submitting, rather than claiming.

Circumstances in which you can get duty clawback on aviation fuel

• You must have paid excise duty on the fuel in the UK. See below regarding JetA1.
• You must use the fuel on a flight that departs from the UK and lands outside of the UK.
• You must claim the drawback within two years of the date of export.

Does it make any difference if the flight is private or commercial

Yes, the flight has to be private. You can only claim drawback on fuel used for commercial flights if the aircraft is at least 40 tons net register tonnage (NRT). This requirement rules out commercial helicopters. For private flights, there is no minimum NRT requirement.

Does it apply to all fuel types

Technically, yes, it applies to all fuel types, including both JetA1 and Avgas. However, JetA1 is normally sold in the UK without duty which is why clawback usually only applied to Avgas. For JetA1, it is a case of claiming exemption.

Does it work for non-UK aircraft

Yes, it does work for non-UK aircraft. However, the aircraft must be registered in a country that has a reciprocal agreement with the UK on duty drawback.

Example

You own a private aircraft that is registered in the UK. You fill up your aircraft with Avgas at Denham and then fly to Le Touquet. You fly around France, using up your tank. You can claim drawback on the duty paid on the Avgas you had oil board at departure.

How to claim drawback

You can claim drawback using the online service or by completing form HO60. You will need to provide evidence of the fuel used, such as receipts and flight logs.

Paying duty on JetA1²

Unlike Avgas, JetA1 doesn’t usually include duty. When you buy JetA1 you may be asked by the supplier if it’s to be used for “private pleasure flying”. If that’s the case you’ll be asked to make the following written declaration.

Declaration

‘I declare that some or all of the kerosene purchased is to be used for private pleasure flying. I am aware that, on the quantity of kerosene used for private pleasure flying, I have a legal obligation to pay to HMRC an amount equal to the rebate allowable on a like quantity of kerosene at the time of this declaration.’.

You have to make this declaration each time. If somebody else purchases fuel for you, for example if you employ a maintenance company to look after your helicopter including filling it with fuel, there are 2 options. You can either:

(i) provide a declaration to be given to the fuel supplier when the fuel is purchased and you’ll have an obligation to pay the duty
(ii) authorise the maintenance company to complete the declaration and pay the duty on your behalf – you’ll still need to inform them how much of the fuel is to be used for private pleasure purposes in order for them to calculate the duty due.

In our experience, not all maintenance companies are able to do (ii).

When to pay

You must pay the duty no later than 30 days after the end of the calendar month in which the declaration was made and the fuel was purchased. If you make only an occasional purchase you may prefer to pay the duty straightaway rather than wait until the end of the month. However, if you make more than one purchase in a month you should make one payment, and submit one form, covering the total purchases in the calendar month concerned.

Situations where you do not need to pay duty

• the use of an aircraft by a company for the carriage of passengers or goods, if there is a consideration for transportation services provided
• flying in support of emergency services
• training – if provided through an approved training school or by a qualified instructor and the trainee pilot is under the supervision of an instructor whether that instructor accompanies the student or not
• mail services and freight services provided for a consideration
• agricultural, aerial survey, aerial photography, support for coast guard duties are considered not to be private pleasure flying
• flying for engineering development and testing
• international flying – this use remains exempt

For the avoidance of doubt, you are not exempt if you transport staff or business clients in helicopters.

1. These were updated in March 2023 ↩︎
2. Excise Notice 554 ↩︎