Finance Act 2002

Repayment of duty in case of biodiesel used otherwise than as road fuel

4 (1) After section 17 insert—

“17A Biodiesel used otherwise than as road fuel

(1) If, on an application made for the purposes of this section, it is shown to the satisfaction of the Commissioners that within the period for which the application is made any quantity of biodiesel has been used by the applicant as mentioned in subsection (2) below, then, subject as provided below, the applicant shall be entitled to obtain from the Commissioners repayment of the amount specified below.

(2) A person is entitled to repayment under this section in respect of biodiesel used by him—

(a) otherwise than as road fuel,

(b) otherwise than by mixing the biodiesel with—

(i) hydrocarbon oil, or

(ii) a mixture containing hydrocarbon oil, and

(c) otherwise than in the form of a mixture containing biodiesel and hydrocarbon oil.

(3) For the purposes of subsection (2)(a) above, use “as road fuel” means use—

(a) as fuel for the engine provided for propelling a road vehicle or for an engine that draws its fuel from the same supply as such an engine, or

(b) as an additive or extender in any substance so used.

(4) The amount of the repayment is the amount of the excise duty which has been paid in respect of the quantity of biodiesel used less the amount of £0.0313 a litre.

(5) The Commissioners may require an applicant for repayment under this section—

(a) to state such facts concerning the biodiesel that is the subject of the claim, or the use to which it was put, as they may think necessary to deal with the application;

(b) to furnish them in such form as they may require with proof of any statement so made;

(c) to retain such records as the Commissioners may require relating to the use of biodiesel; and

(d) to permit an officer to inspect any premises, plant or vehicle on or in which the biodiesel in respect of which repayment is claimed is used.

(6) If the applicant fails to comply with any such requirement, the Commissioners may reject the claim.”.

(2) In paragraph 3 of Schedule 4 (regulations about claims for repayments), after “section 9(4), 17,” insert “17A,”.