Government scraps tax on first 2,500 Litres of biodiesel

Mon 25 June 2007 View all news

New Government regulations will allow small scale producers of biofuel (below 2,500 litres) not to pay duty on the fuel they produce.

At present the law requires anyone producing any quantity of a biofuel (mostly biodiesel in the UK) to pay duty of 28.35p on every litre they produce as well as submitting returns to HM Revenue & Customs. The change in regulation provides the opportunity for members of the public to produce enough biofuel for their own personal consumption, duty free. There are currently about 1,400 producers of biofuel in the UK, a large proportion of whom produce for their own personal use.

The Government says that it will review the effectiveness of the 2,500 litre level and will consider raising the threshold a year after its introduction.

The Government has also announced that it is reducing the frequency with which it requires information from all but the largest biofuel producers.

 

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