This is permissible where all duties have been paid at the full, unrebated rate.
Such mixing gives rise to an additional duty charge. (
Hydrocarbon Oil Duties Act 1979, (HODA) section
20AAA (3))
Any person engaged in such activity is required to notify
HMRC in advance, or within 7 days from the date of supply or
production of such mixed oil, and to account for any additional
duty. (HODA, section 20AAB).
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.
A satisfactory system for detecting markers in rebated road
fuel containing biofuel is essential and a fuel testing project is
underway at the time of publication. Progress on the development
and introduction of markers with biodiesel will be announced on the
intranet and in further updates to this guidance.
Note: Budget 2007 gave notice that the duty rate for blends
of biodiesel and rebated fuel will be changed to an off-road rate
in Budget 2008.
