Game over for Vegetable Oil / Cooking oil as fuel.
http://www.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageImport_ShowContent&id=HMCE_PROD1_024771&propertyType=document
HMRC have reissued their note on how to pay tax on your veg oil (ie make it legal to put into your tank.
Basically they have closed this 'loophole' and they say it's because vegoil aint good enough to burn.
Sorry guys...
Tana.
What is the duty rate on cooking oil?
On its own, straight vegetable oil does not meet the biodiesel specification, because it is not a "diesel quality" fuel in the meaning given in HODA (2) (a) and clarified in the guidance (Business Brief 10/05) we have issued. We consider that vegetable oils require further treatment before meeting the "diesel quality" criterion.
We have concluded that vegetable oil (whether used or unused) must be processed by a method that converts the vegetable oil into a fuel suitable for use in a diesel engine - the only method we are currently aware of is the transesterification process. The reduced duty rate for biodiesel was set to provide for the additional cost of producing the fuel against the cost of producing ordinary diesel and to reflect the environmental benefits of this fuel.
We consider that the intention of the law is to give the reduced rate to fuel produced from vegetable oil and not to vegetable oil itself.
Cooking oil on its own is a fuel substitute and attracts the sulphur-free duty rate which is currently 47.10 pence per litre.
http://www.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageImport_ShowContent&id=HMCE_PROD1_024771&propertyType=document
HMRC have reissued their note on how to pay tax on your veg oil (ie make it legal to put into your tank.
Basically they have closed this 'loophole' and they say it's because vegoil aint good enough to burn.
Sorry guys...
Tana.
What is the duty rate on cooking oil?
On its own, straight vegetable oil does not meet the biodiesel specification, because it is not a "diesel quality" fuel in the meaning given in HODA (2) (a) and clarified in the guidance (Business Brief 10/05) we have issued. We consider that vegetable oils require further treatment before meeting the "diesel quality" criterion.
We have concluded that vegetable oil (whether used or unused) must be processed by a method that converts the vegetable oil into a fuel suitable for use in a diesel engine - the only method we are currently aware of is the transesterification process. The reduced duty rate for biodiesel was set to provide for the additional cost of producing the fuel against the cost of producing ordinary diesel and to reflect the environmental benefits of this fuel.
We consider that the intention of the law is to give the reduced rate to fuel produced from vegetable oil and not to vegetable oil itself.
Cooking oil on its own is a fuel substitute and attracts the sulphur-free duty rate which is currently 47.10 pence per litre.