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).
Hydrocarbon Oil Duties Act 1979 section 17A
provides for repayment of an element of excise duty where duty paid
biodiesel is used in place of rebated marked gas oil (red diesel).
(BoFSR, Regulation 28).
Any repayment will be restricted to the amount of duty paid
less the rebated duty. (See Notice 179E for details).
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-chargeable
use. 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’.)
