A rural fuel duty rebate pilot scheme has been given the green light from the European Union, to start on March 2012.
The Treasury has confirmed that a 5ppl tax discount will apply to fuel sold in Scotland’s Inner and Outer Hebrides, Northern Isles, the islands in the Clyde and the Isles of Scilly.
Fuel retailers will receive a 5ppl rebate on the petrol and diesel they purchase, which is required to be passed on to motorists. To ensure retailers suffer no cash-flow problems in passing on the discount from March 1, they will be able to claim the 5ppl rebate from HM Revenue and Customs on fuel purchased from January 1.
The announcement came after the UK government received final European Union clearance for the scheme. Draft legislation for the pilot scheme will be published on the HMRC website