Revenue and Customs Brief 10 (2014): fuel additives
Published 28 March 2014
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Purpose of this brief
This HM Revenue and Customs (HMRC) brief provides information about legislative changes on fuel additives, and the warehousing of bioethanol for the production of biodiesel.
Who needs to read this?
Businesses involved in oil refining and blending.
Background
Under the Energy Products Directive (EPD), the rate of duty on additives and extenders is that of the host oil - whatever oil they are added to. Therefore, where additives or extenders are added to rebated fuel or liquefied petroleum gas (LPG), the rate of duty on the additives or extenders should be that of the rebated fuel, or the LPG. We have amended UK legislation to meet our obligation under the EPD.
In addition, HMRC has also legislated for an Extra Statutory Concession relating to the warehousing of bioethanol for the production of biodiesel. This gives legal cover on the policy of allowing bioethanol to be moved into an excise warehouse where it is going to be used in the production of biodiesel.
What are the legal changes?
These changes are contained in:
- The Other Fuel Substitutes (Rates of Excise Duty etc)(Amendment) Order 2014 (SI 2014/470)(Opens new window)
- The Biofuels and Other Fuel Substitutes (Payment of Excise Duties etc)(Amendment) Regulations 2014 (SI 2014/ 471)(Opens new window)
Timing
The changes come into effect on 1 April 2014.
Further Guidance
Further information relating to fuel for road and off road use can be found in Public Notice 179E Biofuels and other fuel substitutes. This will be updated.
Issued 28 March 2014