• Hydrocarbon Oil Duties Act 1979
• Hydrocarbon Oil (Payment of Rebates) Regulations 1996
• Customs and Excise Management Act 1979
• EC Statutory Instrument
• Financial Bill / Budget

Biodiesel : Biodiesel does not appear to have been recognised as a form of fuel until Budget 2002. The rate of excise duty for biodiesel is £0.20 per litre less than the rate of duty for Ultra Low Sulphur Diesel (ULSD). In Budget 2008 it was announced that the current duty differential of £0.20 per litre for biofuels for road use will cease from 2010. Duty thereafter will be charged at the same rate as main road fuels.

          Biodiesel must meet all of the following criteria to meet the fiscal definition:

• Must be "diesel quality" - i.e. capable of being used for the same purposes as heavy oil and being able to run an engine that would normally run on diesel - either in a blend with ordinary diesel or where biodiesel is used exclusively

• Must be liquid - not gaseous - at a temperature of 15°C and under a pressure of 1013.25 millibars

• Must be made from biomass or waste cooking oil

• The total ester content must not be less than 96.5% by weight

• The sulphur content must not exceed 0.005% by weight (or be nil)

• Biodiesel is liable for VAT

• Producers of biodiesel in the UK must register with Customs & Excise and complete form EX103. Records must be kept, and returns submitted monthly using form HO930

• Link to Budget 2008 note (BN71) - Hydrocarbon oils duty rate changes (PDF file)

• Link to HMCE Notice - Biodiesel and Bioblend : Notice 179E