UK Trade Tariff: excise duties, reliefs, drawbacks and allowances on or before 31 July 2023
Updated 22 November 2023
© Crown copyright 2023
This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open-government-licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gov.uk.
Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned.
This publication is available at https://www.gov.uk/government/publications/uk-trade-tariff-excise-duties-reliefs-drawbacks-and-allowances/uk-trade-tariff-excise-duties-reliefs-drawbacks-and-allowances
1. Introduction
This part concentrates on goods liable to excise duty. It lists the rates of excise duty chargeable for the following:
- wine and made-wine
- beer
- cider and perry
- spirits
- low alcohol beverages
- imported composite goods containing alcohol
- tobacco products
- hydrocarbon oil — this section includes details about rebates for such products
- Climate Change Levy
- biofuels
Use this guide with the Trade Tariff: look up commodity codes, duty and VAT rates to help with commodity code numbers (for example, 2204 10 11 for certain wines).
This part also contains some information and reference about excise drawback and excise duty reliefs.
1.1 Important note on definitions
The definitions used in this part are those prescribed for excise duty purposes only.
1.2 Background
Excise duty is chargeable, in addition to any customs duty which may be due, on the goods described in this part. These goods may be either of UK origin, received in the UK following an intra EU movement or imported from outside the UK or EU.
The duty falls due at the time when the goods leave any duty suspension arrangements, that is when:
- they are released for consumption or otherwise made available for consumption (generally through the warehouse system) registered trader (REDS) or occasional importer receives them in the UK
- a vendor makes a delivery under distance selling arrangements
- missing consignments and other dutiable shortages are discovered
- goods imported for personal use are then sold or put to commercial use
1.3 Tax type code
Different rates can apply to different sub categories of goods. In addition to the commodity description and code number each excisable item has allocated a tax type code number (for example, 451 for spirits). These identify the type and rate of excise duty payable. They are included in the tables listed in section Wine and made-wine. UK Trade Tariff: Box 47(a) tax type codes also lists tax codes which are declared on the Single Administrative Document (SAD) import document.
2. Wine and made-wine
Wine produced in the UK by a licensed producer of wine or imported (in strengths measured by reference to the following percentages of alcohol at a temperature of 20°C).
| Class or description | Tax type code | Rate of excise duty |
|---|---|---|
| Sparkling exceeding 5.5% ABV but less than 8.5% ABV | 412 | £288.10 per hectolitre |
| Sparkling 8.5% ABV and above but not exceeding 15% ABV | 411 | £381.15 per hectolitre |
| Still exceeding 5.5% ABV but not exceeding 15% ABV | 413 | £297.57 per hectolitre |
| Still or sparkling exceeding 15% ABV but not exceeding 22% ABV | 415 | £396.72 per hectolitre |
| Still or sparkling exceeding 22% ABV | 419 | £28.74 per litre of alcohol in the wine |
Made-wine produced in the UK by a licensed producer of made-wine or imported (in strengths measured by reference to the following percentages of alcohol at a temperature of 20°C).
| Class or description | Tax type code | Rate of excise duty |
|---|---|---|
| Sparkling exceeding 5.5% ABV but less than 8.5% ABV | 422 | £288.10 per hectolitre |
| Sparkling 8.5% ABV and above but not exceeding 15% ABV | 421 | £381.15 per hectolitre |
| Still exceeding 5.5% ABV but not exceeding 15% ABV | 423 | £297.57 per hectolitre |
| Still or sparkling exceeding 15% ABV but not exceeding 22% ABV | 425 | £396.72 per hectolitre |
| Still or sparkling exceeding 22% ABV | 429 | £28.74 per litre of alcohol in the wine |
See section on Low alcohol beverages for strengths not exceeding 5.5% ABV.
2.1 Definitions and notes
‘Wine’ means any liquor obtained from the alcoholic fermentation of fresh grapes or the must of fresh grapes, whether or not the liquor is fortified with spirits or flavoured with aromatic extracts.
‘Made-wine’ means any liquor obtained from the alcoholic fermentation of any substance but does not include wine, beer, spirits or cider.
Wine or made-wine is chargeable at the sparkling rate if either:
- the pressure in the container measured at 20°C is not less than 3 bars in excess of atmospheric pressure
- the container has a mushroom stopper held in place by a tie or fastening — regardless of the pressure
‘Mushroom stopper’ means a mushroom shaped stopper made of cork, artificial or plastic material (solid or hollow).
3. Beer
| Class or description | Tax type code | Rate of excise duty |
|---|---|---|
| Made in UK (standard rate, that is, annual production more than 60,000 hectolitres) | 407 | £19.08 for each hectolitre per 1% ABV charged to the nearest 0.1% ABV (and the respective proportionate charges for parts of hectolitres) |
| Imported beer (that is, annual production more than 60,000 hectolitres) | 473 | £19.08 for each hectolitre per 1% ABV charged to the nearest 0.1% ABV (and the respective proportionate charges for parts of hectolitres) |
| Made in UK — small brewery beer eligible to reduced rates (variable rate, that is, annual production more than 5,000 hectolitres but not exceeding for 60,000 hectolitres) | 440 | £9.54 to £19.08 for each hectolitre per 1% ABV charged to the nearest 0.1% ABV (and the respective proportionate charges for parts of hectolitres) |
| Imported beer — small brewery beer eligible to reduced rates (variable rate, that is, annual production more than 5,000 hectolitres but not exceeding for 60,000 hectolitres) | 441 | £9.54 to £19.08 for each hectolitre per 1% ABV charged to the nearest 0.1% ABV (and the respective proportionate charges for parts of hectolitres) |
| Made in UK — small brewery beer eligible to reduced rates (variable rate, that is, annual production no more than 5,000 hectolitres) | 442 | £9.54 for each hectolitre per 1% ABV charged to the nearest 0.1% ABV (and the respective proportionate charges for parts of hectolitres) |
| Imported beer — small brewery beer eligible to reduced rates (variable rate, that is, annual production no more than 5,000 hectolitres) | 443 | £9.54 for each hectolitre per 1% ABV charged to the nearest 0.1% ABV (and the respective proportionate charges for parts of hectolitres) |
| If total ABV does not exceed 1.2% | 431 | Nil |
| Made in UK — high strength Beer Duty (applies to beer exceeding 7.5% ABV — general Beer Duty is also due on all UK-produced high strength beer) | 445 | £5.69 for each hectolitre per 1% ABV charged to the nearest 0.1% ABV (and the respective proportionate charges for parts of hectolitres) |
| Imported beer — high strength Beer Duty (applies to beer exceeding 7.5% ABV — general Beer Duty is also due on all imported high strength beer) | 447 | £5.69 for each hectolitre per 1% ABV charged to the nearest 0.1% ABV (and the respective proportionate charges for parts of hectolitres) |
| Made in UK — reduced rate of general Beer Duty (applies to beer exceeding 1.2% ABVbut not exceeding 2.8% ABV) | 444 | £8.42 for each hectolitre per 1% ABV c res) |
| Imported beer — reduced rate of general Beer Duty (applies to beer exceeding 1.2% ABV but not exceeding 2.8% ABV) | 446 | £8.42 for each hectolitre per 1% ABV charged to the nearest 0.1% ABV (and the respective proportionate charges for parts of hectolitres) |
Reduced rates of duty were introduced from 1 June 2002 for beer produced by independent breweries producing no more than 30,000 hectolitres. For breweries producing between 5,000 and 30,000 hectolitres, the following arithmetical formula is used to calculate the rate of duty.
(Annual production — 2,500) ÷ annual production × standard rate of duty at the time concerned. This must be rounded up to the nearest penny.
Reduced rates of duty were also introduced from 1 June 2004 for beer produced by independent breweries producing between 30,000 and 60,000 hectolitres.
The following arithmetical formula is used to calculate the rate of duty for these breweries.
(Annual production — (2,500 — 8.3% ABV of annual production in excess of 30,000 hectolitres)) × standard rate of duty at the time concerned ÷ annual production.
This must be rounded up to the nearest penny.
3.1 Definitions and notes
‘Beer’ includes ale, porter, stout and any other description of beer and any liquor which is sold as beer or as a substitute for beer and on analysis a sample is found to be of an alcoholic strength exceeding 0.5%. ABV is the proportion of alcohol as a percentage of the fermented beer.
The duty is charged on alcoholic strength to one decimal place, for example 4.19% ABV becomes 4.1% ABV (ignore figures after the first decimal place).
Low alcohol beverages made from malt exceeding 0.5% ABV but not exceeding 1.2% ABV are not liable to excise duty.
Examples of beer-based beverages are set out in the section on Low alcohol beverages which also shows the rate of excise duty for these products up to 5.5% ABV. Beer and spirits mixtures exceeding 1.2% ABV are liable to duty at the spirits rate. Beer mixtures containing dutiable liquors other than spirits and exceeding 5.5% ABV are liable at the appropriate made-wine rate.
Small brewery beer relief will still be available on the general Beer Duty element of beer above 7.5% ABV. However, it will not apply to high strength Beer Duty and no further relief will be applied to the reduced rate of general Beer Duty for lower strength beers.
4. Cider and perry
Cider (or perry) — manufactured in the UK by a registered maker of cider or perry or imported.
| Class or description | Tax type code | Rate of excise duty |
|---|---|---|
| Sparkling made in the UK or imported exceeding 5.5% ABV but less than 8.5% ABV | 485 | £288.10 per hectolitre |
| Sparkling made in the UK or imported exceeding 1.2% ABV but not exceeding 5.5% ABV | 481 | £40.38 per hectolitre |
| Still made in the UK or imported exceeding 1.2% ABV but less than 6.9% ABV | 481 | £40.38 per hectolitre |
| Still made in the UK or imported at least 6.9% ABV but not exceeding 7.5% ABV | 487 | £50.71 per hectolitre |
| Still made in the UK or imported exceeding 7.5% ABV but less than 8.5% ABV | 483 | £61.04 per hectolitre |
| If total abv does not exceed 1.2% ABV | 431 | Nil |
4.1 Definitions and notes
‘Cider’ means cider (or perry) of a strength of less than 8.5% of ABV (at 20°C) obtained from the fermentation of apple or pear juice without the addition at any time of any alcoholic liquor or of any liquor or substance which communicates colour or flavour other than such as the Commissioners may allow as appearing to them to be necessary to produce cider (or perry).
Cider or perry is chargeable at the sparkling rate (a) if the container has an excess pressure due to carbon dioxide in solution of 3 bar or more, or (b) if the container has a mushroom stopper held in place by a tie or fastening — regardless of the pressure.
See section on Wine and made-wine for definition of ‘mushroom stopper.’
5. Spirits
| Class or description — UK-produced whisky | Tax type code | Rate of excise duty |
|---|---|---|
| Wholly malt | 461 | £28.74 per litre of alcohol in the spirits at a temperature of 20°C |
| Wholly grain | 462 | £28.74 per litre of alcohol in the spirits at a temperature of 20°C |
| Blended | 463 | £28.74 per litre of alcohol in the spirits at a temperature of 20°C |
| Spirits other than UK-produced whisky | 451 | £28.74 per litre of alcohol in the spirits at a temperature of 20°C |
| Spirits-based beverages exceeding 1.2% ABV volume but not exceeding 8% ABV volume | 438 | £28.74 per litre of alcohol in the spirits at a temperature of 20°C |
5.1 Notes
If spirits are imported in bottles which the importer does not wish to be opened for test, HMRC will normally be prepared to accept excise duty on the basis of a declared strength of 77% ABV volume for drinkable spirits. HMRC reserves the right to test any consignment.
6. Low alcohol beverages
Wine where the alcohol strength does not exceed 5.5% ABV.
Made-wine where the alcohol strength does not exceed 5.5% ABV.
Mixed drinks made from cider or perry base where the alcohol strength does not exceed 5.5% ABV.
Beer-based beverage duty only applies to beverages of an alcoholic strength exceeding 1.2% ABV but not exceeding 5.5% ABV.
There are 2 different rates of duty for a beer-based beverage:
- one where the alcohol by volume content exceeds 1.2% ABV but does not exceed 2.8% ABV
- the other where the alcohol by volume content exceeds 2.8% ABV but does not exceed 5.5% ABV
| Class or description | Tax type code | Rate of excise duty |
|---|---|---|
| Not exceeding 1.2% volume | 431 | Nil |
| Exceeding 1.2% volume but not exceeding 4.0% | 433 | £91.68 per hectolitre |
| Exceeding 4.0% volume but not exceeding 5.5% | 435 | £126.08 per hectolitre |
| Imported beer-based beverages exceeding 1.2% volume but not exceeding 2.8% volume | 446 | £8.42 for each hectolitre per 1% abv charged to the nearest 0.1% |
| Beer-based beverages made in the UK exceeding 1.2% volume but not exceeding 2.8% volume | 444 | £8.42 for each hectolitre per 1% ABV charged to the nearest 0.1% |
| Beer-based beverage exceeding 2.8% volume but not exceeding 5.5% | 473 | £19.08 per hectolitre for every 1% ABV to the nearest 0.1% |
6.1 Definitions and notes
Beer-based beverage duty only applies to beverages of an alcoholic strength exceeding 1.2% ABV but not exceeding 5.5% ABV and cannot be dutiable as a ‘made-wine’.
This does not include cider, perry and beer as defined in sections for cider and perry and beer. The following are classified as beer-based beverages:
- shandy made with lemonade, or a mixture of beer and lemonade, lemon cordial, lemon flavouring, lemon juice, or lemon squash
- lager-and-lime, or a mixture of beer and lime cordial, lime flavouring, lime juice, lime squash, or limeade
- ginger beer shandy, shandygaff, or a mixture of beer and ginger, ginger cordial, ginger flavouring, ginger squash, or unfermented ginger beer
- a mixture of beer and:
- fruit cordial, fruit flavourings, fruit flavoured carbonated water, fruit juice or fruit squash
- any alcoholic liquor or other alcoholic substance
A reduced rate of general Beer Duty should be applied to beer-based beverages of an alcoholic strength exceeding 1.2% ABV but not exceeding 2.8% ABV. The tax type codes 444 or 446 should be used based on the origin of the product. Note these are identical to the tax type codes for low alcohol beer found in chapter 3. Where the beer-based beverage is of an alcoholic strength exceeding 2.8% ABV but not exceeding 5.5% ABV then the tax type code 473 should be used regardless of origin.
7. Imported composite goods containing alcohol
Goods containing ingredients liable to excise duty are chargeable with:
- Customs Duty where appropriate on the goods as a whole
- excise duty on the ingredient
The tax type codes and excise duty rates are the same as for the type of alcohol used as the ingredient, for example, spirits (451) £28.74 per litre of alcohol.
7.1 Exceptions
| Class or description | Excise duty |
|---|---|
| Medical preparations — spirits in mixture, compounds or other preparations which are recognised by the Commissioners as being used for medical purposes and which are in fact used for those purposes. See Excise Notice 47. |
Nil |
| Goods unfit for human consumption containing spirits, for example, perfumed goods, paints, dye stuffs, inks. See Excise Notice 64. | Nil |
8. Tobacco products
| Class or description | Tax type code | Rate of excise duty from 6pm 15 March 2023 | Minimum excise tax |
|---|---|---|---|
| Cigarettes | 611 | An amount equal to the higher of the following alternatives either £294.72 per 1,000 cigarettes plus 16.5% of retail price or £393.45 per 1,000 cigarettes. | £393.45 per 1,000 cigarettes |
| Cigars | 615 | £367.61 per kg — the weight for duty is the total weight of the cigar, which may exclude any detachable filter or mouthpiece | Not applicable |
| Hand-rolling tobacco | 619 | £351.03 per kg | Not applicable |
| Other smoking tobacco | 623 | £161.62 per kg | Not applicable |
| Chewing tobacco | 627 | £161.62 per kg | Not applicable |
| Tobacco for heating | 633 | £302.93 per kg | Not applicable |
8.1 Definitions and notes
For the purposes of Tobacco Products Duty, tobacco products are defined in the Tobacco Products (Descriptions of Products) Order 2003 SI 2003/1471. The following is a summary of those definitions.
‘Tobacco products’ means any of the products listed which are manufactured wholly or partly from tobacco or any substance used as a substitute for tobacco but does not include herbal smoking products.
‘Cigarettes’ means any roll of tobacco capable of being smoked as they are and not falling within any of the descriptions of a cigar, or rolls of tobacco that, by simple non-industrial handling, are:
- inserted into cigarette-paper tubes
- wrapped in cigarette paper
Any cigarette more than 9 centimetres (cm) long (excluding any filter or mouthpiece) will be treated as if each 9cm or part thereof were a separate cigarette.
‘Cigars’ include products of the following descriptions.
(1) rolls of tobacco made entirely of natural tobacco.
(2) rolls of tobacco, even if mixed with substances other than tobacco, with an outer wrapper of natural tobacco.
(3) rolls of tobacco with a threshed blend filler of tobacco or tobacco mixed with substances other than tobacco, with a binder and outer wrapper of reconstituted tobacco.
The outer wrapper must have the normal colour of a cigar and be fitted in spiral form with an acute angle of at least 30 degrees to the longitudinal axis of the cigar. The outer wrapper must cover the cigar in full including any filter but not (in the case of cigars with a mouthpiece) the mouthpiece.
Cigars falling within this description must have a unit weight (excluding filter or mouthpiece) of not less than 1.2 grams (gm).
(4) rolls of tobacco with a threshed blend filler of tobacco or tobacco mixed with substances other than tobacco and with an outer wrapper of reconstituted tobacco that has the normal colour of a cigar.
The outer wrapper must cover the cigar in full including any filter but not (in the case of cigars with a mouthpiece) the mouthpiece.
Any binder may be made of a material other than tobacco or reconstituted tobacco.
Cigars falling within this definition must have a unit weight (excluding any filter or mouthpiece) of not less than 2.3gm and a circumference over at least one third of its length of at least 34 millimetres (mm).
A cigarillo that falls within one of these descriptions is a cigar.
‘Hand-rolling tobacco’ means tobacco:
- of which more than 25% by weight of the tobacco particles have a width of less than 1mm
- which is sold or intended to be sold for making into cigarettes by hand
- which is of a kind used for making into cigarettes by hand
‘Chewing tobacco’ includes any product prepared for chewing that consists in whole or in part of tobacco, or substitute for tobacco, and does not fall within the definition of one of the other tobacco products. It does not include products that are intended solely as an aid for persons to give up smoking.
‘Tobacco for heating’ means:
- tobacco capable of being heated, without combustion, in order to produce or flavour vapour
- not cigarettes, cigars, hand-rolling tobacco, other smoking tobacco, or chewing tobacco
‘Other smoking tobacco’ means tobacco that has been cut, split, twisted or pressed into blocks, and is capable of being smoked without further industrial processing, or tobacco refuse put up for retail sale that can be smoked, and which does not fall within the definition of one of the other tobacco products.
‘Herbal smoking products’ means products commonly known as herbal cigarettes or herbal smoking mixtures. They do not include plant material which is specially grown or processed for use as a tobacco substitute
Herbal material is usually readily identifiable as such by its texture and aromatic and pungent odour.
9. Hydrocarbon oil
The Hydrocarbon Oil Duties Act 1979 (HODA) specifies full rates of excise duty on mineral oils and rebates of duty. The effect of applying a rebate of duty to a full rate is to create a lower rate of duty. These lower rates are known as rebated rates. This mechanism increases the number of effective rates of mineral oils excise duty.
9.1 Light oil
| Description of goods | Full or unrebated rate of excise duty — £ per litre | Rebate — £ per litre | Type of tax code | Effective rate of excise |
|---|---|---|---|---|
| Unrebated (unmarked) — aviation gasoline (including light oil aviation turbine fuel) | 0.3629 | Nil | 511 | 0.3629 |
| Unrebated (unmarked) — other unrebated light oil | 0.6267 | Nil | 520 | 0.6267 |
| Rebated — furnace fuel (marked or unmarked) | 0.6267 | 0.5289 | 521 | 0.0978 |
| Rebated — unleaded petrol | 0.5295 | Nil | 522 | 0.5295 |
9.2 Heavy oil
| Description of goods | Full or unrebated rate of excise duty — £ per litre | Rebate — £ per litre | Type of tax code | Effective rate of excise |
|---|---|---|---|---|
| Unrebated (unmarked, including Diesel Engine Road Vehicle (DERV) or road fuel extender and unmarked kerosene or unmarked gas oil for which no marking waiver has been granted) | 0.5295 | Nil | 541 | 0.5295 |
| Rebated — other (unmarked) heavy oil (other than kerosene) intended for use as heating fuel, or as fuel for an engine, which would otherwise be eligible for a full rebate | 0.5295 | 0.4317 | 540 | 0.0978 |
| Kerosene to be used as motor fuel off road or in an excepted vehicle | 0.5295 | 0.4277 | 542 | 0.1018 |
| Kerosene (marked or unmarked under marking waiver, including heavy oil aviation turbine fuel) to be used other than as motor fuel off-road or in an excepted vehicle | 0.5295 | 0.5295 | 551 | Nil |
| Gas oil (marked or unmarked under marking waiver) | 0.5295 | 0.4277 | 556 | 0.1018 |
| Fuel oil (unmarked) | 0.5295 | 0.4317 | 561 | 0.0978 |
| Other (unmarked) | 0.5295 | 0.5295 | 570 | Nil |
9.3 For the purpose of these duties
‘Hydrocarbon oil’ means petroleum oils, coal tar, and oils produced from coal, shale, peat or any other bituminous substance, and all liquid hydrocarbons, but does not include such hydrocarbons or bituminous or asphaltic substances as are:
- solid or semi-solid at a temperature of 15°C
- gaseous at a temperature of 15°C and under a pressure of 1013.25 millibars
‘Light oil’ means hydrocarbon oil of which not less than 90% by volume distils at a temperature not exceeding 210°C or which gives off an inflammable vapour at a temperature of less than 23°C when tested in the manner prescribed by the acts relating to petroleum.
‘Aviation gasoline’ means light oil which is specially produced as fuel for aircraft, is not normally used in road vehicles and is delivered for use solely as fuel for aircraft.
‘Light oil furnace fuel’ means light oil delivered to approved furnace operators in accordance with the provisions of Excise Notice 184A, section 5.
‘Unleaded petrol’ means petrol containing not more than 0.013gm of lead per litre of petrol.
‘Ultra low sulphur petrol’ means unleaded petrol:
- the sulphur content of which does not exceed 0.005% by weight or is nil
- the aromatics content of which does not exceed 35% by volume
‘Sulphur free petrol’ means unleaded petrol the sulphur content of which does not exceed 0.001% by weight (or is nil).
‘Heavy oil’ means hydrocarbon oil other than light oil.
‘DERV’ means heavy oil intended for use as fuel for a mechanically propelled vehicle which is constructed or adapted for use on roads (with certain exceptions, details of which are given in Excise Notice 75).
‘Ultra low sulphur diesel’ means gas oil:
- the sulphur content of which does not exceed 0.005% by weight or is nil
- the density of which does not exceed 835kg per cubic metre at a temperature of 15°C
- of which not less than 95% by volume distils at a temperature not exceeding 345°C
‘Sulphur free diesel’ means gas oil the sulphur content of which does not exceed 0.001% by weight (or is nil).
‘Kerosene’ means heavy oil of which more than 50% by volume distils at a temperature not exceeding 240°C.
‘Heavy oil aviation turbine fuel’ means kerosene which is intended to be used as fuel for aircraft engines and which is allowed to be delivered for that purpose without being marked.
‘Gas oil’ means heavy oil of which not more than 50% by volume distils at a temperature not exceeding 240°C and of which more than 50% by volume distils at a temperature not exceeding 340°C.
‘Fuel oil’ means heavy oil which either:
- contains in solution an amount of hard asphalt of not less than 0.5%
- contains in solution an amount of hard asphalt of not less than 0.1% and has a closed flashpoint which does not exceed 150°C
‘Rebated oil’ means oil which has been delivered for home use on allowance of a rebate of excise duty under the Hydrocarbon Oil Duties Act 1979, sections 11 and 14.
Supplementary information about the duty on hydrocarbon oil.
Eligibility for rebate, as set out, is restricted as follows.
Light oil furnace fuel — must be delivered marked and dyed (Excise Notice 179, paragraph 8.4), or unmarked under individual ‘supplier’ or ‘user’ marking waiver.
Unleaded petrol — qualifies for rebate without marking or other restriction provided it meets the definition.
Aviation turbine kerosene — may be delivered unmarked, for example, as aircraft fuel under marking waiver (Excise Notice 179).
Other kerosene — must be marked (Excise Notice 179, paragraph 8.4) unless delivered under an individual ‘user or dealer’ marking waiver (Excise Notice 179), or imported in containers not exceeding 2.5 litres capacity and not for use as road fuel.
Gas oil — must be marked (Excise Notice 179, paragraph 8.4), unless delivered under an individual ‘user’ or ‘dealer’ marking waiver, or imported in containers not exceeding 2.5 litres capacity and not for use as road fuel.
Fuel oil or other heavy oil — qualifies for rebate without marking or other restriction, provided it is not intended for use as road fuel or road fuel extender.
Markers must not be present in any oil (whether light or heavy) imported for delivery as road fuel or road fuel extender. The prohibitions relating to markers and obscuration of markers which must be observed are set out in Excise Notice 179.
The excise duty on hydrocarbon oil removed to a refinery, instead of being charged at the time of importation, is charged on the delivery of any goods from the refinery for home use, and is the same as that which would be payable on the importation of like goods. It is therefore allowed the same rebate as would be allowed on importation. Any customs duty chargeable is payable when the oil is taken into use at the refinery, whether as feedstock or otherwise.
From 15 October 1993 the unit for calculation of duty on hydrocarbon oils is the standard litre, that is, litres at 15°C. If not already expressed in those terms quantities will need to be converted. Further information can be found in Excise Notice 179 Appendix l.’
It’s illegal for any person to mix any oil on which no rebate of excise duty has been allowed with:
- fuel oil, gas oil, kerosene or light oil (including unleaded petrol) on which rebate of excise duty has been allowed
- oil delivered without payment of excise duty
except under and in accordance with either an approval granted by the Commissioners under the Mixing Regulations or a licence granted by the Commissioners.
For excisedDuty purposes the methods of test whether any material is solid or semi-solid at a temperature of 15°C, and for the distillation characteristics of oil, are those laid down by the Institute of Petroleum and the Standardisation of Tar Products Test Committee. Further information can be found in Notice 179, Appendix C.
10. Imported composite goods containing mineral oils
Goods containing mineral oils as a part or ingredient of them are not liable to excise duty unless they are intended for use as substitutes for road fuels or as additives to road fuels or road fuel substitutes. Any articles imported for these purposes are chargeable with UK excise duty on 100% of their volume (not only on the percentage of mineral oil, if any, contained within them). The tax type codes and excise duty rates to be applied are the same as for the type of mineral oil which the product is intended to substitute for or is to be added to.
Lubricating oils will not be charged with UK excise duty unless they are to be added to an additives package, in which case excise duty will be charged on the whole package.
10.1 Miscellaneous road fuels — road fuel gases
| Class or description of goods | Type of tax code | Rate of excise duty |
|---|---|---|
| Natural gas (methane content > 80%) | 591 | £0.2257 per kg |
| Road fuel gas (other than natural gas which is gaseous at 15°C and 1013.25 millibars) | 592 | £0.2888 per kg |
11. Climate Change Levy
11.1 Taxable commodities imported or produced in the UK
| Taxable commodity description | Type of tax code | Rate of Climate Change Levy from 1 April 2023 |
|---|---|---|
| Electricity | 990 | £0.00775 per kilowatt hour |
| Natural gas | 990 | £0.00672 per kilowatt hour |
| Liquefied petroleum gas (LPG) | 990 | £0.02175 per kg |
| Any other taxable commodity | 990 | £0.05258 per kg |
11.2 Definitions and notes
For levy purposes:
- road fuel gases, for example, liquefied petroleum gas (LPG) and compressed natural gas (CNG) used as fuel in road vehicles are not liable to the levy
- LPG when used for heating purposes is not subject to mineral oils excise duty so is liable to levy
- the conversion rate of 2,000 litres per tonne is to be used when covering litres of liquid propane and butane to kg
- waste coal, for example, slurry is not liable to levy — waste coal means any supply of coal with an open market value not exceeding £15 per tonne
12. Biofuels
| Description of goods | Full or unrebated rate of excise duty — £ per litre | Rebate — £ per litre | Type of tax code | Effective rate of excise — £ per litre |
|---|---|---|---|---|
| Biodiesel | 0.5295 | Nil | 589 | 0.5295 |
| Biodiesel to be used as motor fuel off road or in an excepted vehicle | 0.5795 | 0.4681 | 571 | 0.1114 |
| Bioethanol | 0.5295 | Nil | 595 | 0.5295 |
| Biodiesel blended with kerosene for use as heating fuel | 0.5295 | 0.5295 | 572 | Nil |
| Bioblend — biodiesel blended with heavy oil | 0.5295 | — | See note | — |
Note — bioblend does not have its own tax code as it’ll be accounted for under the tax codes of biodiesel and heavy oil depending on the ratios of each.
For the purpose of these duties:
‘Biodiesel’ is a diesel quality liquid fuel produced from biomass or waste cooking oil:
- the total ester content of which is not less than 96.5% by weight
- the sulphur content of which does not exceed 0.005% by weight
‘Bioblend’ is a fuel which is a mix of heavy oil and biodiesel in varying ratios.
‘Bioethanol’ is a liquid fuel consisting of ethanol produced from biomass and is capable of being used for the same purpose as light oil.
13. Reliefs from excise duty
13.1 General
The following reliefs relate only to excise duties and do not extend to any customs duties to which imported goods may be liable. For a list of the reliefs from customs duties allowable in respect of imported goods (which in some circumstances may extend to excise as well as import duty).
13.2 Alcoholic liquors
Scope of relief and statutory provision
Any dutiable alcoholic liquor which has been converted into vinegar or used in the manufacture of any beverage of an alcoholic strength not exceeding 1.2%, chocolates for human consumption which contain alcohol such that 100kg of the chocolates would not contain more than 8.5 litres of alcohol, or any other food for human consumption which contains alcohol such that 100kg of the food would not contain more than 5 litres of alcohol.
Nature and conditions of relief
Duty paid on alcohol which has been used for these purposes can be claimed back (see Excise Notice 41), section 4.
13.3 Beer
Scope of relief and statutory provision
Having been removed from the registered premises of a brewer and returned to the brewer as spoilt or otherwise unfit for use (Alcoholic Liquor Duties Act 1979, section 46(1).
Nature and conditions of relief
Remission or repayment of duty (see the Beer Regulations 1993). Statutory Instrument 1993/1228/ — Part IX covers spoilt beer (see Excise Notice 226).
13.4 Spirits
| Scope of relief and statutory provision | Nature and conditions of relief |
|---|---|
| Contained in an article, imported or delivered from warehouse, recognised as being used for medical purposes (Alcoholic Liquor Duties Act 1979, section 7). | Free of duty (see Excise Notice 47). |
| Proved to the satisfaction of the Commissioners of Revenue and Customs to have been used for scientific purposes or used solely in the manufacture or preparation of articles recognized by them as being used for medical purposes. (Alcoholic Liquor Duties Act 1979, section 8). | Spirits for these purposes can be used for received duty free, from an excise warehouse by trades as properly authorized (see Excise Notice 47). |
| Delivered from excise warehouse for use in the conditions manufacture of denatured alcohol. (Alcoholic Liquor Duties Act 1979, section 75). | Free of spirits duty subject to such as the Commissioners see fit to impose (see Excise Notice 473). |
| Delivered from excise warehouse to authorised persons for use in any art or manufacture where the Commissioners of Revenue and Customs are satisfied that the use of denatured alcohol is unsuitable or detrimental (Alcoholic Liquor Duties Act 1979, section 10). | Free of duty subject to such conditions as the Commissioners see fit to impose (see Excise Notice 47). |
| Contained in goods not for human consumption (Alcoholic Liquor Duties Act 1979, section 11). | Free of duty, subject to certain conditions (see Excise Notice 64). |
| Used in warehouse in specified proportions to fortify made-wine or wine (Alcoholic Liquor Duties Act 1979, sections 57 and 68). | Free of spirits duty subject to such conditions as the Commissioners see fit to impose. |
13.5 Tobacco products
Scope of relief and statutory provision
Used solely for the purposes of research or experiment (Tobacco Products Duty Act 1979, section 2(2)).
Nature and conditions of relief
Free of duty subject to such conditions as the Commissioners see fit to impose (see Excise Notice 476).
13.6 Hydrocarbon oil
| Scope of relief and statutory provision | Nature and conditions of relief |
|---|---|
| Used on board vessels including hovercraft but not pleasure craft engaged on marine voyages (Hydrocarbon Oil Duties Act (Marine Voyager Reliefs) Regulations 1996). | Light oil — repayment of duty paid. Heavy oil — shipment duty-free or repayment of duty paid (see Excise Notice 263). |
| Consumed in premises approved by the Commissioners of Revenue and Customs as a refinery in a process of chemical conversion into substances other than hydrocarbon oil. (Hydrocarbon Oil Duties Act 1979, section 6). | Free of duty (see Excise Notice 179). |
| Heavy oil used in horticulture. (Hydrocarbon Oil Duties Act 1979, section 17). | Repayment of duty (see Excise Notice 183). |
| Delivered to a person approved by the Commissioners for use other than as motor fuel (including as extender or additive to motor fuel) or as heating fuel. (Hydrocarbon Oil Duties Act 1979, section 9). | Delivery or importation free of duty or repayment of any excise duty paid (see Excise Notice 184A). |
| Rebated oil used as fuel in power plants producing energy for the treatment or production of oil at refineries or producers’ premises. (Hydrocarbon Oil Duties Act 1979, sections 19A and 27(1)). | Free of excise duty if eligible for full relief, repayment of excise duty if eligible for partial relief (see Excise Notice 179, Appendix K). |
14. Excise drawbacks and allowances
14.1 General
Under the Excise Goods (Drawback) Regulations 1995, regulation 7(6), duty on the goods must have been paid not more than 3 years before the event (such as, exportation) giving rise to the claim for drawback.
The expression ‘stores’ used in this section means goods granted for use as stores in a ship or aircraft. To ship goods as stores means to load stores so granted into a ship or aircraft for use on board.
14.2 Conditions and rates — alcoholic liquors
Beer
Drawback equal to the excise duty shown to the satisfaction of the Commissioners of Revenue and Customs to have been paid (see paragraph on Beer) may be claimed on beer imported or removed from the Isle of Man or produced in the UK on which it is shown that excise duty has been paid upon being exported, or shipped as stores.
Conditions and rates — hydrocarbon oil
Drawback equal to the excise duty shown to the satisfaction of the Commissioners to have been paid (see paragraph on Hydrocardon Oil) may be claimed on hydrocarbon oil or any article containing hydrocarbon oil either as an ingredient of manufacture or preparation, or as a component of such an ingredient upon being exported, or shipped as stores, or warehoused for use as stores, or loaded into any aircraft for use on a flight to an eventual destination outside the UK (see Excise Notice 172).