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HMRC internal manual

Duty Free Spirits Guidance

HM Revenue & Customs
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Technical Guidance: If a trader wants to use DFS to manufacture a motor fuel, can he do so?

Not usually. The majority of fuels/fuel additives which are manufactured using spirits use denatured alcohol. However, in unusual circumstances, such as for research or experimental purposes, the use of denatured alcohol may not be conducive to the trader’s needs.

In such cases, if the trader can prove that:

  • the use of denatured alcohol is detrimental or unsuitable for the manufacture, and
  • the end product does not have an alcoholic strength exceeding 1.2 per cent abv

we may accept the application. The trader must, however, submit evidence to the National Registration Unit (NRU) to support his claims.