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HMRC internal manual

Biofuels and Fuel Substitutes Assurance

From
HM Revenue & Customs
Updated
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Appendices: Glossary

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B  
   
Bioblend Any mixture that is made by mixing biodiesel and heavy oil not charged with the excise duty on hydrocarbon oil (duty- suspended heavy oil).
Biodiesel A diesel quality liquid fuel derived from biomass or waste cooking oils, the ester content of which is not less than 96.5% by weight; and the sulphur content of which does not exceed 0.005 per cent by weight, or is nil.
Bioethanol A liquid fuel consisting of ethanol produced from biomass, which has been denatured and is capable of being used for the same purposes as light oil.
Bioethanol blend Any mixture that is produced by mixing bioethanol and hydrocarbon oil not charged with excise duty.
Biofuel Means biodiesel, bioethanol or fuel substitute.
Biomass Any organic matter (animal or vegetable) that is available on a renewable or recurring basis.
C  
Chargeable use The use of biofuel as fuel for any engine, motor, or other machinery, or as an additive or extender in any substance so used.
D  
Duty suspension The process that allows oils to be stored without paying excise duty, until the oils are delivered to home use.
E  
Ester A type of organic compound. Esters are the principal constituents of most animal and vegetable fats and oils.
Exempt producer A person producing, or expecting to produce, less than 2,500 litres of any non-hydrocarbon road fuel, including biofuel of any kind or quality, or any other fuel substitute or additive, in either the last 12 months or the next 12 months
Excise duty The United Kingdom revenue duty chargeable on both imported and home produced energy products. It is charged at a specific rate on the quantity and description of products delivered to home use.
Excise duty point The time when the requirement to pay any duty with which the goods become chargeable is to take effect.
Excise goods Goods that are liable to excise duty. biodiesel and bioethanol are classed as excise goods when they are set aside or sent out for a chargeable use
F  
Fiscal specification Definitions of the various dutiable energy products used to establish duty rates are contained in HODA. The fiscal specification for biodiesel is in HODA 2AA.
Fuel substitute Any liquid or substance used either in place of mineral (hydrocarbon) oil as fuel for any motor, engine or other machinery or to extend or replace duty paid vehicle fuel.
For more details of how fuel substitutes should be treated for revenue purposes see Notice 179E.    
  G  
  Gas oil Heavy oil of which not more than 50% by volume distils at a temperature not exceeding 240º C and of which more than 50% by volume distils at a temperature not exceeding 340ºC. If it has been marked, it is known as marked gas oil or red diesel.
  H  
  Heavy oil Hydrocarbon oil other than light oil (The Hydrocarbon Oil Duties Act 1979 (HODA) section 1(4)).
  Home use The United Kingdom home market.
  L  
  Light oil Hydrocarbon oil – (a) of which not less than 90% by volume distils at a temperature not exceeding 210ºC, or
(b) which gives off an inflammable vapour at a temperature of less than 23ºC when tested in the manner prescribed by the Acts relating to petroleum.    
  M  
  Marked oils Those oils that have been marked to identify them as eligible for a rebate of excise duty. The oils affected are gas oil, and kerosene.
  Marking Adding certain approved chemicals and dyes to oils in order to identify them as rebated.
  Mineral oils Hydrocarbons that are liquid below 15ºC. The terms “hydrocarbon oils” and “mineral oils” mean the same thing.
  R  
  Rebate A reduction in excise duty that is allowed on oils that have been put to industrial and off-road use. They are marked to show that they have been rebated.

It is illegal to use rebated fuels as fuel in road vehicles. | | Revenue trader | A person importing, exporting, producing, handling, processing, packaging, transporting or dealing in goods chargeable with excise duty. | | S |   | | Special energy product | A substance that is:
(a) petroleum gas;
(b) animal fat ‘set aside’ for use as motor or heating fuel;
(c) vegetable fat ‘set aside’ for use as motor or heating fuel;
(d) non-synthetic methanol ‘set aside’ for use as motor or heating fuel;
(e) biodiesel; or
(f) a mixture of two or more of the substances specified in paragraphs (a) to (e). | | Standard litre | A litre of oil measured at a temperature of 15ºC. | | Sulphur-free diesel | Gas oil with a sulphur content of less than 0.001 per cent by weight, or nil. | | SVO | Straight vegetable oil (i.e. unused cooking oil). | | T |   | | Tax warehouse | A place where excise goods are produced, processed, held, received or dispatched under duty-suspension arrangements by an authorised warehouse-keeper in the course of his business, subject to certain conditions laid down by the competent authorities of the EU member state where the warehouse is situated. | | Tied oil | Oil that has been delivered conditionally relieved of duty under Section 9 of HODA- see Notice 184A for further details. | | U |   | | UCO | Used cooking oil | | ULSD | Ultra low sulphur diesel is gas oil that contains less than 0.005% sulphur by weight. The density of the oil must not exceed 835Kg per cubic metre at a temperature of 15º C, and not less than 95% by volume distils at a temperature not exceeding 345ºC and which is not sulphur-free diesel. | | W |   | | WVO | Waste vegetable oil (also UCO) |