Biodiesel information

     
Biofuel Systems Group Limited
Biodiesel & UK tax / excise
 
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General information
Products & Services Disclaimer : The following information is based on H.M. Customs & Excise information notices. The following information should be regarded as an interpretation of these notices. Biofuel Systems accept no responsibility for any errors, inaccuracies, omissions or any other inconsistencies of the following information. Anyone wishing to use, produce or sell biodiesel in the UK, or elsewhere, is solely responsible for their actions and must ensure that all relevant laws and regulations are obeyed. Biodiesel process
Biodiesel chemistry
Online Shop Biodiesel standards
Contact Information Excise and Inland Customs Advice Centre : For information and copies of information notices contact 0845 0109000 Biodiesel & uk excise
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  The laws concerned:  
 
  • 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
Fiscal definition

          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)
 
UK duty rates Duty rate per litre (£)  
 
Pre Budget 2008
On or after 1 April 2008
On or after 1 October 2008
On or after 1 April 2009
 
Biodiesel - road use
0.3035
0.3035
0.3235
0.3419
  
Bioethanol - road use
0.3035
0.3035
0.3235
0.3419
  
Biodiesel - non-road use
0.0313
0.0969
0.1007
 
Biodiesel - non-road use blended with gas oil
0.5694
0.0969
0.1007
 
Biodiesel blended with Kerosene for heating use
0.5694
Nil
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 HMCE Notice - Biodiesel and Bioblend : Notice 179E
  
     
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