HMRC have issued Revenue & Customs Brief 18/10 which sets out information on a relief introduced on 1 April for biodiesel produced from waste cooking oil. From that date, duty rates for biodiesel and bioethanol are being increased to the same level as conventional petrol and diesel, but biodiesel produced from waste cooking oil will continue to benefit from 20 pence per litre (ppl) duty differential for a period of 2 years until 31 March 2010.
The relief will be available to producers of biodiesel from waste cooking oil who are approved under the Excise Duties (Deferred Payment) Regulations 1992, or who are liable to pay biofuels duty in accordance with the Biofuels & Other Fuel Substitutes Regulations 2004.
The brief defines some key terms such as 'producer' and 'chargeable use' and also confirms that there has been no change to the definition of biodiesel. The brief also sets out how the relief is to be calculated, and claimed. In addition it confirms that HMRC will require documentary evidence that the biodiesel on which relief has been claimed has been produced from waste cooking oil.
The full text of the brief can be accessed here.