Pre-Budget Report – Biofuels Duty
HMRC have confirmed an announcement made in the 2008 Budget that will affect businesses that produce and import hydrocarbon oils and alternative fuel products.
With effect from 1 April 2010 the 20 pence per litre differential for biofuels duty will end. Legislation will be introduced in Finance Bill 2010 to amend the duty rates for biodiesel and bioethanol which will become chargeable at the same rate as main road fuels.
Secondary legislation will be introduced to maintain the 20 pence per litre duty differential for biodiesel produced only from waste cooking oil fora period of two years.