HCOBIG7500 | Biodiesel and Bioblend - Production, storage and delivery: Duty reliefs

Electricity

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

Up to 1 April 2022, the use of biodiesel for heating was not a chargeable use.

From 1 April 2022, the relief was withdrawn and biodiesel used for heating premises used for a commerial purpose is liable to the full rate of excise duty. Biodiesel used to heat premises used for a non commercial purpose is liable to the rebated rate of exicse duty and must contain the required markers to indicate that it has only suffered the rebated rate of excise duty.