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HMRC internal manual

Biofuels and Fuel Substitutes Assurance

Biodiesel and Bioblend - Production, storage and delivery: Mixing


This is permissible where all duties have been paid at the full, unrebated rate.

Biodiesel/bioblend with rebated heavy oil.

Such mixing gives rise to an additional duty charge. (Hydrocarbon Oil DutiesAct 1979, (HODA) section 20AAA (3))

Any person engaged in such activity is required to notify HMRC in advance, or within 7days from the date of supply or production of such mixed oil, and to account for any additional duty. (HODA, section 20AAB).

Duty rates

Biodiesel blended with rebated fuel attracts the heavy oil rate on the entire blend at the time of publication.

There are increasing pressures, (political, trade and environmental) to allow renewable biofuels to be used in rebated applications.

Note: Budget 2007 gave notice that the duty rate for blends of biodiesel and rebated fuel would be changed to an off-road rate in Budget 2008.