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HMRC internal manual

Oils Technical Manual

Introduction and overview of oils activity: Contaminated, waste and recovered oils: Processing of 'waste' oils

Where oil is simply cleaned by filtering or settlement, and the recovered oil is to the same specification as that from which it is recovered, no new oil is deemed to have been produced and the waste oil may be treated and recovered without the need for authorisation.

Where however oil is re-processed using heat, or re-distilled producing new oil products, which are different to the ‘waste’ oil from which it has been recovered. This may be deemed to be oil production and the waste processor may require authorisation as a motor and heating oils producer in order for the oil to be treated.