Find the commodity description, code number and tax type code number to identify the type and rate of excise duty payable if you’re a UK-based business.

Use this guide with the Trade Tariff: look up commodity codes, duty and VAT rates to help with commodity code numbers. For example, 2204 10 11, for certain wines.

Introduction

This information relates to goods liable to excise duty and lists the rates of excise duty chargeable for:

• wine and other fermented products
• beer
• cider and perry
• spirits
• imported composite goods containing alcohol
• tobacco products
• hydrocarbon oil — this section includes details about rebates for such products
• Climate Change Levy
• biofuels

Important note on definitions

The definitions used in this part are those prescribed for excise duty purposes only.

Background

Excise duty is chargeable, in addition to any customs duty which may be due, on the goods described in this section. These goods may be either of UK origin, imported from outside the UK or for Northern Ireland only, following an intra EU movement.

The duty falls due at the time when the goods leave any duty suspension arrangements, that is when:

• they are released for consumption, or otherwise made available for consumption (generally through the warehouse system) registered trader (REDS) or occasional importer receives them in Northern Ireland
• a vendor makes a delivery under distance selling arrangements (Northern Ireland only)
• missing consignments and other dutiable shortages are discovered
• goods imported for personal use are then sold, or put to commercial use

Tax type and national additional codes

Different rates can apply to different sub categories of goods. In addition to the commodity description and commodity code, each excisable item is allocated:

• a tax type code (for example, 321 for beer) which should be declared in Data Element (DE) 4/3
• an associated National Additional Code (for example, X321 for beer applicable to tax type 321) which should be declared in DE 6/17

These identify the type and rate of excise duty payable.

301 — Low alcohol not exceeding 1.2%

Products of a strength 1.2% alcohol by volume (ABV) or less are, for Alcohol Duty purposes, not considered to be an alcoholic product. There is no Alcohol Duty due on such products.

Wine and other fermented product (formerly made-wine)

Wine produced in the UK by an approved producer of wine or imported (in strengths measured by reference to the following percentages of alcohol at a temperature of 20°C).

Class or description	Tax type code	Rate of excise duty
Wine less than 3.5% ABV	313	£9.61 per litre of alcohol
Wine at least 3.5% ABV but less than 8.5% ABV	323	£25.67 per litre of alcohol
Wine at least 8.5% ABV but not exceeding 22% ABV	333	£29.54 per litre of alcohol
Wine exceeding 22% ABV	343	£32.79 per litre of alcohol
Wine less than 3.5% ABV and eligible for reduced rates of Alcohol Duty for draught products	353	£8.28 per litre of alcohol
Wine at least 3.5% ABV but less than 8.5% ABV eligible for reduced rates of Alcohol Duty for draught products	358	£18.76 per litre of alcohol
Wine less than 3.5% ABV and eligible for reduced rates of Alcohol Duty for small producer products	363	Check wine definitions and notes
Wine at least 3.5% ABV but less than 8.5% ABV eligible for reduced rates of Alcohol Duty for small producer products	368	Check wine definitions and notes
Wine less than 3.5% ABV and eligible for reduced rates of Alcohol Duty for draught products and small producer products	373	Check wine definitions and notes
Wine at least 3.5% ABV but less than 8.5% ABV eligible for reduced rates of Alcohol Duty for draught products and small producer products	378	Check wine definitions and notes

Wine definitions and notes

‘Wine’ is defined as any product obtained from the alcoholic fermentation of fresh grapes or the must of fresh grapes (whether or not the liquor is fortified with spirits).

Reduced rates of duty were introduced from 1 August 2023 for wine eligible for Draught Relief and producers eligible for Small Producer Relief (based on the overall alcohol production size of the producer).

For reduced rates of Alcohol Duty for eligible draught products, the wine must be of a strength less than 8.5% ABV and be contained in large draught containers. Check if you can pay less Alcohol Duty on draught products.

For reduced rates of Alcohol Duty for eligible small producer products, the producer must determine the rate they are eligible for in advance. Check if you’re eligible for Small Producer Relief on Alcohol Duty.

Class or description	Tax type code	Rate of excise duty
Other fermented products less than 3.5% ABV	314	£9.61 per litre of alcohol
Other fermented products at least 3.5% ABV but less than 8.5% ABV	324	£25.67 per litre of alcohol
Other fermented products at least 8.5% ABV but not exceeding 22% ABV	334	£29.54 per litre of alcohol
Other fermented products exceeding 22% ABV	344	£32.79 per litre of alcohol
Other fermented products less than 3.5% ABV eligible for reduced rates of Alcohol Duty for draught products	354	£8.28 per litre of alcohol
Other fermented products at least 3.5% ABV but less than 8.5% ABV eligible for reduced rates of Alcohol Duty for draught products	359	£18.76 per litre of alcohol
Other fermented products less than 3.5% ABV eligible for reduced rates of Alcohol Duty for small producer products	364	Check other fermented products definitions and notes
Other fermented products at least 3.5% ABV but less than 8.5% ABV eligible for reduced rates of Alcohol Duty for small producer products	369	Check other fermented products definitions and notes
Other fermented products less than 3.5% ABV eligible for reduced rates of Alcohol Duty for draught products and small producer products	374	Check other fermented products definitions and notes
Other fermented products at least 3.5% ABV but less than 8.5% ABV eligible for reduced rates of Alcohol Duty for draught products and small producer products	379	Check other fermented products definitions and notes

Other fermented products definitions and notes

‘Other fermented products’ (formerly made-wine) means a product which is either:

• obtained from the alcoholic fermentation of any substance
• obtained by mixing a product from the alcoholic fermentation of any substance or anything derived from that product, with anything else that is not beer, wine, spirits or cider

Other fermented products will include products similar to wine but not made from fresh grape and some ‘ready to drink’ products that are made using a fermented alcohol.

Reduced rates of Alcohol Duty were introduced from 1 August 2023 for other fermented products eligible for Draught Relief and for producers eligible for Small Producer Relief (based on the overall alcohol production size of the producer).

For reduced rates of Alcohol Duty for eligible draught products, the other fermented products must be of a strength less than 8.5% ABV and be contained in large draught containers. Check if you can pay less Alcohol Duty on draught products.

For reduced rates of Alcohol Duty for eligible small producer products, the producer must determine the rate they are eligible for in advance. Check if you’re eligible for Small Producer Relief on Alcohol.

Beer

Class or description	Tax type code	Rate of excise duty
Beer less than 3.5% ABV	311	£9.61 per litre of alcohol
Beer at least 3.5% ABV but less than 8.5% ABV	321	£21.78 per litre of alcohol
Beer at least 8.5% ABV but not exceeding 22% ABV	331	£29.54 per litre of alcohol
Beer exceeding 22% ABV	341	£32.79 per litre of alcohol
Beer less than 3.5% ABV and eligible for reduced rates of Alcohol Duty for draught products	351	£8.28 per litre of alcohol
Beer at least 3.5% ABV but less than 8.5% ABV and eligible for reduced rates of Alcohol Duty for draught products	356	£18.76 per litre of alcohol
Beer less than 3.5% ABV and eligible for reduced rates of Alcohol Duty for small producer products	361	Check beer definitions and notes
Beer at least 3.5% ABV but less than 8.5% ABV and eligible for reduced rates of Alcohol Duty for small producer products	366	Check beer definitions and notes
Beer less than 3.5% ABV and eligible for reduced rates of Alcohol Duty for draught products and small producer products	371	Check beer definitions and notes
Beer at least 3.5% ABV but less than 8.5% ABV and eligible for reduced rates of Alcohol Duty for draught products and small producer products	376	Check beer definitions and notes

Beer definitions and notes

Beer is defined as including:

• ale, porter, stout and any other type of beer
• any other product which is made or sold as beer (or as a substitute for beer)

This includes flavoured beer using essences or natural flavours.

It also includes mixtures of beer with non-alcoholic drinks (for example, lemonade to produce shandy) and mixtures of beer with alcoholic products (other than spirits) where the final product strength does not exceed 5.5% ABV.

Reduced rates of Alcohol Duty were introduced from 1 August 2023 for beer eligible for Draught Relief and for producers eligible for Small Producer Relief (based on the overall alcohol production size of the producer).

For reduced rates of Alcohol Duty for eligible draught products, the beer must be of a strength less than 8.5% ABV and be contained in large draught containers. Check if you can pay less Alcohol Duty on draught products.

For reduced rates of Alcohol Duty for eligible small producer products, the producer must determine the rate they are eligible for in advance. Check if you’re eligible for Small Producer Relief on Alcohol Duty.

For duty purposes, you should round the alcoholic strength down to one decimal place. For example, 7.59% ABV becomes 7.5% ABV.

Cider

Class or description	Tax type code	Rate of excise duty
Cider less than 3.5%ABV	312	£9.61 per litre of alcohol
Cider at least 3.5% ABV but less than 8.5% ABV and sparkling cider at least 3.5% ABV not exceeding 5.5% ABV	322	£10.02 per litre of alcohol
Sparkling cider exceeding 5.5% ABV but less than 8.5% ABV	324	£25.67 per litre of alcohol
Cider less than 3.5% ABV and eligible for reduced rates of Alcohol Duty for draught products	352	£8.28 per litre of alcohol
Cider at least 3.5% ABV but less than 8.5% ABV, and sparkling cider at least 3.5% ABV not exceeding 5.5% ABV and eligible for reduced rates of Alcohol Duty for draught products	357	£8.63 per litre of alcohol
Sparkling cider exceeding 5.5% ABV but less than 8.5% ABV and eligible for reduced rates of Alcohol Duty for draught products	359	£18.76 per litre of alcohol
Cider less than 3.5% ABV and eligible for reduced rates of Alcohol Duty for small producer products	362	Check cider definitions and notes
Cider at least 3.5% ABV but less than 8.5% ABV, and sparkling cider at least 3.5% ABV not exceeding 5.5% ABV and eligible for reduced rates of Alcohol Duty for small producer products	367	Check cider definitions and notes
Sparkling cider exceeding 5.5% ABV but less than 8.5% ABV and eligible for reduced rates of Alcohol Duty for small producer products	369	Check cider definitions and notes
Cider less than 3.5% ABV and eligible for reduced rates of Alcohol Duty for draught products and small producer products	372	Check cider definitions and notes
Cider at least 3.5% ABV but less than 8.5% ABV, and sparkling cider at least 3.5% ABV not exceeding 5.5% ABV and eligible for reduced rates of Alcohol Duty for draught products and small producer products	377	Check cider definitions and notes
Sparkling cider exceeding 5.5% ABV but less than 8.5% ABV and eligible for reduced rates of Alcohol Duty for draught products and small producer products	379	Check cider definitions and notes

Cider definitions and notes

‘Cider’ means a product obtained from the fermentation of apple juice or pear juice which has been produced without the addition, at any time, of another alcoholic product or anything, other than a permitted substance, which communicates colour or flavour, that satisfies the juice content requirements and is an alcoholic strength of less than 8.5% ABV. In addition, the cider definition provides that ‘the pre-fermentation mixture satisfies the pre-fermentation requirement’ and the cider satisfies the final product juice requirement:

• pre-fermentation juice requirement — at least 35% apple or pear juice must be included in any mixture from which fermentation takes place.
• final product juice requirement — a minimum of 35% apple or pear juice must be included overall in making the final product.

Cider is chargeable at the sparkling rate (a) if the container has an excess pressure due to carbon dioxide in solution of 3 bar or more, or (b) if the container has a mushroom stopper held in place by a tie or fastening — regardless of the pressure.

‘Mushroom stopper’ means a mushroom shaped stopper made of cork, artificial or plastic material (solid or hollow). Cider is rendered sparkling either if:

• as a result of aeration, fermentation or any other process, it falls within the definition of sparkling cider
• not previously rendered sparkling, it is transferred into a closed bottle which has, or the stopper of its bottle is exchanged for, a mushroom-shaped stopper

Still cider means cider which is not sparkling.

Reduced rates of Alcohol Duty were introduced from 1 August 2023 for cider eligible for Draught Relief and for producers eligible for Small Producer Relief (based on the overall alcohol production size of the producer).

For reduced rates of Alcohol Duty for eligible draught products, the cider must be of a strength less than 8.5% ABV and be contained in large draught containers. Check if you can pay less Alcohol Duty on draught products.

For reduced rates of Alcohol Duty for eligible small producer products, the producer must determine the rate they are eligible for in advance. Check if you’re eligible for Small Producer Relief on Alcohol Duty.

Spirits

Class or description	Tax type code	Rate of excise duty
Spirits less than 3.5% ABV	315	£9.61 per litre of alcohol
Spirits at least 3.5% ABV but less than 8.5% ABV	325	£25.67 per litre of alcohol
Spirits at least 8.5% ABV but not exceeding 22% ABV	335	£29.54 per litre of alcohol
Spirits exceeding 22% ABV	345	£32.79 per litre of alcohol
Spirits less than 3.5% ABV and eligible for reduced rates of Alcohol Duty for draught products	355	£8.28 per litre of alcohol
Spirits at least 3.5% ABV but less than 8.5% ABV and eligible for reduced rates of Alcohol Duty for draught products	360	£18.76 per litre of alcohol
Spirits less than 3.5% ABV and eligible for reduced rates of Alcohol Duty for small producer products	365	Check spirit notes
Spirits at least 3.5% ABV but less than 8.5% ABV and eligible for reduced rates of Alcohol Duty for small producer products	370	Check spirit notes
Spirits less than 3.5% ABV and eligible for reduced rates of Alcohol Duty for draught products and small producer products	375	Check spirit notes
Spirits at least 3.5% ABV but less than 8.5% ABV and eligible for reduced rates of Alcohol Duty for draught products and reduced rates of duty for small producer products	380	Check spirit notes

Spirit notes

Spirits are defined as spirits of any description or any mixture or compound made with spirits, that also contain other alcoholic products. The extraction of spirits absorbed in a wooden cask is also treated as the production of spirits.

Reduced rates of Alcohol Duty were introduced from 1 August 2023 for spirits eligible for Draught Relief and for producers eligible for Small Producer Relief (based on the overall alcohol production size of the producer).

For reduced rates of Alcohol Duty for eligible draught products, the spirits must be of a strength less than 8.5% ABV and be contained in large draught containers. Check if you can pay less Alcohol Duty on draught products.

For reduced rates of Alcohol Duty for eligible small producer products, the producer must determine the rate they are eligible for in advance. Check if you’re eligible for Small Producer Relief on Alcohol Duty.

If spirits are imported in bottles which the importer does not wish to be opened for test, HMRC will normally be prepared to accept excise duty on the basis of a declared strength of 77% ABV volume for drinkable spirits. HMRC reserves the right to test any consignment.

Imported composite goods containing alcohol

Goods containing ingredients liable to excise duty are chargeable with:

• customs duty where appropriate on the goods as a whole
• excise duty on the ingredient

The tax type codes and excise duty rates are the same as for the type of alcohol used as the ingredient listed.

Class or description	Excise duty
Medical preparations — spirits in mixture, compounds or other preparations which are recognised by the commissioners as being used for medical purposes and which are in fact used for those purposes. Further information can be found in Excise notice 47	Nil
Goods unfit for human consumption containing spirits, for example, perfumed goods, paints, dye stuffs, inks. Further information can be found in Excise Notice 64	Nil

Tobacco products

The following table displays tobacco products rates from 6pm on 30 October 2024.

Class or description	Tax type code	Rate of excise duty from 6pm 30 October 2024	Minimum excise tax
Cigarettes	611	An amount equal to the higher of the following alternatives either £334.58 per 1,000 cigarettes plus 16.5% of retail price or £446.67 per 1,000 cigarettes.	£446.67 per 1,000 cigarettes
Cigars	615	£417.33 per kg — the weight for duty is the total weight of the cigar, which may exclude any detachable filter or mouthpiece.	Not applicable
Hand-rolling tobacco	619	£476.83 per kg	Not applicable
Other smoking tobacco	623	£183.49 per kg	Not applicable
Chewing tobacco	627	£183.49 per kg	Not applicable
Tobacco for heating	633	£343.91 per kg	Not applicable

Definitions and notes

For the purposes of Tobacco Products Duty, tobacco products are defined in the Tobacco Products (Descriptions of Products) Order 2003 SI 2003/1471. The following is a summary of those definitions.

‘Tobacco products’ means any of the tobacco products listed which are manufactured wholly or partly from tobacco or any substance used as a substitute for tobacco but does not include herbal smoking products.

‘Cigarettes’ means any roll of tobacco capable of being smoked as they are and not falling within any of the descriptions of a cigar, or rolls of tobacco that, by simple non-industrial handling, are:

• inserted into cigarette-paper tubes
• wrapped in cigarette paper

Any cigarette more than 8 centimetres (cm) long (excluding filter or mouthpiece) is treated for duty purposes as though the first 8cm of it, each 3cm portion of the remainder of it and the remaining portion of it (if any) were a separate cigarette.

‘Cigars’ include products of the following descriptions.

Cigars with an outer wrapper of natural tobacco

Cigars falling within this description include cigars containing a mixture of tobacco and other substances, provided that they have an outer wrapper of natural tobacco.

A cigar containing only substances other than tobacco does not fall within this description.

Cigars with a threshed blend filler and with an outer wrapper that has the normal colour of a cigar

The outer wrapper must be made of reconstituted tobacco and must cover the cigar in full, including where appropriate the filter, but not (in the case of cigars with a mouthpiece) the mouthpiece.

If the filler is held together with a binder, the binder may be made of a material other than tobacco or reconstituted tobacco.

Each cigar must have a unit weight (excluding the weight of any filter or mouthpiece) of not less than 2.3 grams and not more than 10 grams. The circumference over at least one third of the length of the cigar must not be less than 34 mm.

A cigar containing only substances other than tobacco does not fall within this description.

Cigarillos

A cigarillo is a cigar with a maximum weight of 3 grams. Cigarillos are subject to the same rate of excise duty as cigars. A product that is described as a cigarillo but falls within one of the descriptions of cigars is treated as a cigar.

Hand rolling tobacco

‘Hand-rolling tobacco’ means tobacco of which more than 25% by weight of the tobacco particles have a width of less than 1.5mm, or which is either:

• sold or intended to be sold for making into cigarettes by hand
• of a kind used for making into cigarettes by hand

Chewing tobacco

‘Chewing tobacco’ includes any product prepared for chewing that consists in whole or in part of tobacco or substitute for tobacco, and does not fall within the definition of one of the other tobacco products. It does not include products that are intended solely as an aid for persons to give up smoking.

Tobacco for heating

‘Tobacco for heating’ means either:

• tobacco capable of being heated, without combustion, in order to produce or flavour vapour
• not cigarettes, cigars, hand-rolling tobacco, other smoking tobacco, or chewing tobacco

Other smoking tobacco

‘Other smoking tobacco’ means tobacco that has been cut, split, twisted or pressed into blocks, and is capable of being smoked without further industrial processing, or tobacco refuse put up for retail sale that can be smoked, and which does not fall within the definition of one of the other tobacco products.

Herbal smoking products

‘Herbal smoking products’ means products commonly known as herbal cigarettes or herbal smoking mixtures. They do not include plant material which is specially grown or processed for use as a tobacco substitute

‘Herbal smoking products’ include but are not limited to:

• herbal cigarettes
• herbal pipe smoking mixtures
• water pipe (Shisha), containing no tobacco
• smoking mixtures for hand rolling into cigarettes

These products do not contain tobacco but are specifically designed and sold as smoking products. For taxation purposes, they are liable to tobacco excise duty.

Herbal material is usually readily identifiable as such by its texture and aromatic and pungent odour.

Tax type codes for products not subject to tobacco duty

There are certain cases where specific products that are not subject to tobacco excise duty are classified under the same commodity headings in the Tariff to other types of products that are subject to tobacco excise duty. In order to facilitate the accuracy of declarations, these specific products have therefore been allocated their own tax type code which differentiates them and confirms that no tobacco excise duty is due.

Tax type code

639 — Snuff (commodity code 24039910): Nasal snuff is tobacco in powder or grain form which has been treated so that it can be taken as snuff and not smoked. It is not subject to excise duty. Code 639 has been introduced to differentiate snuff from chewing tobacco, which is imported under the same commodity code but is subject to excise duty.

The sale or purchase of nasal snuff which has already been manufactured as a final product may also be exempt from the requirements of the Raw Tobacco Approval Scheme, subject to compliance with the conditions explained in Section 4.1 of Excise Notice 2003 — Tobacco Duty: the Raw Tobacco Approval Scheme.

640 — Electronic cigarettes and similar personal electric vaporizing devices (commodity code 8543 4000 00):  Where products falling under this commodity code are imported without any tobacco, they are not subject to tobacco excise duty. Tax type code 640 has been introduced to differentiate these products from tobacco for heating devices that may be imported with tobacco under the same commodity code, in which case the tobacco content is subject to excise duty. 

It should be noted however that a new excise duty on vaping products is planned to be introduced from 1 October 2026 on the liquid content of such products. Consequently, further changes affecting the tax treatment of some products covered by commodity code 8543 4000 00 can be expected from that time.

Hydrocarbon oil

The Hydrocarbon Oil Duties Act 1979 (HODA) specifies full rates of excise duty on mineral oils and rebates of duty. The effect of applying a rebate of duty to a full rate is to create a lower rate of duty. These lower rates are known as rebated rates. This mechanism increases the number of effective rates of mineral oils excise duty.

Light oil

Description of goods	Full or unrebated rate of excise duty — £ per litre	Temporary cut rate of excise duty — £ per litre	Rebate — £ per litre	Type of tax code	Current effective rate of excise
Unrebated — unleaded petrol	0.5795	0.5295	Nil	522	0.5295
Unrebated (unmarked) — aviation gasoline (including light oil aviation turbine fuel)	0.3820	0.3629	Nil	511	0.3629
Unrebated (unmarked) — other unrebated light oil	0.6767	0.6267	Nil	520	0.6267
Rebated — furnace fuel (marked or unmarked)	0.6767	0.6267	0.5289	521	0.0978

Heavy oil

Description of goods	Full or unrebated rate of excise duty — £ per litre	Temporary cut rate of excise duty — £ per litre	Rebate — £ per litre	Type of tax code	Current effective rate of excise
Unrebated (unmarked) diesel, diesel extender or kerosene	0.5795	0.5295	Nil	541	0.5295
Rebated — other (unmarked) heavy oil (other than diesel or kerosene) intended for use as heating fuel, or as fuel for an excepted machine engine, which would otherwise be eligible for a full rebate	0.5795	0.5295	0.4317	540	0.0978
Partially rebated kerosene to be used in an excepted machine, other than for heating	0.5795	0.5295	0.4277	542	0.1018
Fully rebated kerosene (marked) for heating use only, or aviation turbine fuel (unmarked under marking waiver)	0.5795	0.5295	0.5295	551	Nil
Gas oil (marked or unmarked under marking waiver)	0.5795	0.5295	0.4277	556	0.1018
Fuel oil (unmarked)	0.5795	0.5295	0.4317	561	0.0978
Other fully rebated heavy oil (unmarked)	0.5795	0.5295	0.5295	570	Nil

For the purpose of these duties

‘Hydrocarbon oil’ means petroleum oil, coal tar, and oil produced from coal, shale, peat or any other bituminous substance, and all liquid hydrocarbons, but does not include such hydrocarbons or bituminous or asphaltic substances as are:

• solid or semi-solid at a temperature of 15°C
• gaseous at a temperature of 15°C and under a pressure of 1013.25 millibars

‘Light oil’ means either hydrocarbon oil:

• of which not less than 90% by volume distils at a temperature not exceeding 210°C
• which gives off an inflammable vapour at a temperature of less than 23°C when tested in the manner prescribed by the Acts relating to petroleum

‘Aviation gasoline’ means light oil which is:

• specially produced as fuel for aircraft
• delivered for use solely as fuel for aircraft

‘Light oil furnace fuel’ means light oil delivered to approved furnace operators in accordance with the provisions of Excise Notice 184A, section 5.

‘Unleaded petrol’ means petrol containing not more than 0.013gm of lead per litre of petrol.

‘Ultra low sulphur petrol’ means unleaded petrol, of which the:

• sulphur content does not exceed 0.005% by weight or is nil

• aromatics content does not exceed 35% by volume

‘Sulphur free petrol’ means unleaded petrol, the sulphur content of which does not exceed 0.001% by weight (or is nil).

‘Heavy oil’ means hydrocarbon oil other than light oil.

‘DERV’ means heavy oil intended for use as fuel for a mechanically propelled vehicle which is constructed or adapted for use on roads (with certain exceptions, details of which are given in Excise Notice 75).

‘Ultra low sulphur diesel’ means gas oil of which:

• the sulphur content does not exceed 0.005% by weight or is nil
• the density does not exceed 835kg per cubic metre at a temperature of 15°C
• not less than 95% by volume distils at a temperature not exceeding 345°C

‘Sulphur free diesel’ means gas oil of which more than 50% by volume distils at a temperature not exceeding 240°C.

‘Kerosene’ means heavy oil of which more than 50% by volume distils at a temperature not exceeding 240°C.

‘Heavy oil aviation turbine fuel’ means kerosene which is intended to be used as fuel for aircraft engines and which is allowed to be delivered for that purpose without being marked.

‘Gas oil’ means heavy oil, of which:

• not more than 50% by volume distils at a temperature not exceeding 240°C
• more than 50% by volume distils at a temperature not exceeding 340°C

‘Fuel oil’ means heavy oil which either:

• contains in solution an amount of hard asphalt of not less than 0.5%
• contains in solution an amount of hard asphalt of not less than 0.1% and has a closed flashpoint which does not exceed 150°C

‘Rebated oil’ means oil which has been delivered for home use on allowance of a rebate of excise duty under the Hydrocarbon Oil Duties Act 1979, sections 11 and 14.

Supplementary information about the duty on hydrocarbon oil

Eligibility for rebate, as set out, is restricted as follows.

Light oil furnace fuel — must be delivered either:

• marked and dyed — read paragraph 8.4 in (Excise Notice 179)
• unmarked under individual ‘supplier’ or ‘user’ marking waiver, only to approved furnace operators

Aviation turbine kerosene — may be delivered unmarked, for example, as aircraft fuel under marking waiver — read (Excise Notice 179).

Other kerosene — must be marked — read paragraph 8.4 in (Excise Notice 179) unless delivered under an individual ‘user or dealer’ marking waiver (Excise Notice 179), or imported in containers not exceeding 2.5 litres capacity and not for use as road fuel or for any vehicle or machine other than for heating.

Gas oil — must be marked — read paragraph 8.4 in (Excise Notice 179), unless delivered under an individual ‘user’ or ‘dealer’ marking waiver, or imported in containers not exceeding 2.5 litres capacity and not for use as road fuel or as fuel for any vehicle, machine or heating system that it not an excepted machine.

Fuel oil or other heavy oil — qualifies for rebate without marking or other restriction, provided it is not intended for use as fuel other than for an excepted machine or as an extender of fuel used other than for excepted machines.

Markers must not be present in any oil (whether light or heavy) imported for delivery as fuel other than for excepted machines or as an extender of fuel for that use. The prohibitions relating to markers and obscuration of markers which must be observed are set out in Excise Notice 179.

‘Excepted machine’ means a vehicle, vessel, machine or appliance that is of a description given in Schedule 1A to Hydrocarbon Oil Duties Act 1979.

The excise duty on hydrocarbon oil removed to a refinery, instead of being charged at the time of importation, is charged on the delivery of any goods from the refinery for home use and is the same as that which would be payable on the importation of like goods. It is therefore allowed the same rebate as would be allowed on importation. Any customs duty chargeable is payable when the oil is taken into use at the refinery, whether as feedstock or otherwise.

The unit for calculation of duty on hydrocarbon oils is the standard litre, that is, litres at 15°C. If not already expressed in those terms, quantities will need to be converted. Further information can be found in Excise Notice 179 Appendix l.’

It is illegal for any person to mix any oil on which no rebate of excise duty has been allowed with:

• fuel oil, gas oil, kerosene, or light oil (including unleaded petrol) on which rebate of excise duty has been allowed
• oil delivered without payment of excise duty

Except under and in accordance with either an approval granted by the Commissioners under the Mixing Regulations, or a licence granted by the Commissioners.

For excise duty purposes the methods of test whether any material is solid or semi-solid at a temperature of 15°C, and for the distillation characteristics of oil, are those laid down by the Institute of Petroleum and the Standardisation of Tar Products Test Committee. Further information can be found in Excise Notice 179, Appendix C.

Imported composite goods containing mineral oils

Goods containing mineral oils as a part or ingredient of them are not liable to excise duty unless they are intended for use as substitutes for fuels or as additives or extenders for fuels. Any articles imported for these purposes are chargeable with UK excise duty on 100% of their volume (not only on the percentage of mineral oil, if any, contained within them). The tax type codes and excise duty rates to be applied are the same as for the type of mineral oil which the product is intended to substitute for or is to be added to.

Lubricating oils will not be charged with UK excise duty unless they are to be added to an additives package, in which case excise duty will be charged on the whole package.

Miscellaneous road fuels — road fuel gases

Description of goods	Full or unrebated rate of excise duty — £ per litre	Temporary cut rate of excise duty — £ per litre	Type of tax code
Natural gas (methane content above 80%)	0.2470	0.2257	591
Road fuel gas (other than natural gas which is gaseous at 15°C and 1013.25 millibars)	0.3161	0.2888	592

Climate Change Levy

Taxable commodities imported or produced in the UK

Taxable commodity description	Type of tax code	Rate of Climate Change Levy from 1 April 2024
Electricity	99D	£0.00775 per kilowatt hour
Natural gas	99C	£0.00775 per kilowatt hour
Liquefied petroleum gas (LPG)	99B	£0.02175 per kg
Any other taxable commodity	99A	£0.06064 per kg

Definitions and notes

For levy purposes:

• road fuel gases, for example, liquefied petroleum gas (LPG) and compressed natural gas (CNG) used as fuel in road vehicles are not liable to the levy
• LPG when used for heating purposes is not subject to mineral oils excise duty so is liable to levy
• the conversion rate of 2,000 litres per tonne is to be used when covering litres of liquid propane and butane to kg
• waste coal, for example, slurry is not liable to levy — waste coal means any supply of coal with an open market value not exceeding £15 per tonne

Biofuels

Description of goods	Full or unrebated rate of excise duty — £ per litre	Temporary cut rate of excise duty - £ per litre	Rebate — £ per litre	Type of tax code	Current effective rate of excise
Biodiesel	0.5795	0.5295	Nil	589	0.5295
Biodiesel to be used in an excepted machine	0.5795	0.5295	0.4277	571	0.1018
Bioethanol	0.5795	0.5295	Nil	595	0.5295
Biodiesel blended with kerosene, marked for use as heating fuel	0.5795	0.5295	0.5295	572	Nil
Bioblend — biodiesel blended with heavy oil	0.5795	0.5295	N/A	See the information at the end of this section	N/A
Bioblend — biodiesel blended with heavy oil, marked for use in an excepted machine	0.5795	0.5295	0.4277	See the information at the end of this section	0.1018

Bioblend does not have its own tax code as it will be accounted for under the tax codes of biodiesel and heavy oil depending on the ratios of each.

For the purpose of these duties ‘Biodiesel’ is a diesel quality liquid fuel produced from biomass or waste cooking oil, of which the:

• total ester content of which is not less than 96.5% by weight
• sulphur content of which does not exceed 0.005% by weight

‘Bioblend’ is a fuel which is a mix of heavy oil and biodiesel in varying ratios.

‘Bioethanol’ is a liquid fuel consisting of ethanol produced from biomass and is capable of being used for the same purpose as light oil.