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HMRC internal manual

Biofuels and Fuel Substitutes Assurance

Biodiesel and Bioblend - Production, storage and delivery: Duty reliefs


Biodiesel on which duty has been paid may be delivered for use as motor fuel in a generator to produce electricity. Provision exists for relief of duty in such circumstances. (Biofuels and other Fuel Substitutes (Payment of Excise Duties etc) Regulations, 2004 (BoFSR), Part 7).

(See Notice 179E for details of how relief is claimed).


Heating Fuel

The use of biodiesel for heating is not a chargeable use and biodiesel may be delivered as at HCOBIG7350 (b) and (d) iii.

However, it is more likely that duty paid biodiesel is delivered for this purpose. This is due to the onus on the suppliers to have evidence that the supply went to a non-chargeableuse. In these circumstances a claim may be made as per Public Notice 179E, ‘What happens if I use biodiesel in place of red diesel?’.

(Further details on repayment may be found in Notice 179E,’Biodiesel used as heating fuel’.)