The Cruising Association’s Regulations and Technical Services group (RATS) has been in communication with HMRC and confirmed, as a result of the March Budget Statement, that it is their intention to legislate that red diesel in the United Kingdom can only be used in agricultural equipment, on the railways and for non-commercial heating from 1st April 2022.
Since the propulsion of waterborne craft does not fit into these categories, it is HMRC’s intention that they will have to use white diesel for this purpose. The duty on white diesel for boats will be the same as the full rate paid on white road diesel in the UK. This means that the present so called ’60/40′ fuel duty split will disappear but commercial vessels, such as fishing boats, will still be able to claim a rebate on the full rate through their ‘Marine Voyages Relief’ scheme.
HMRC are exploring the issues involved in introducing a scheme that allows private pleasure craft to pay Continue reading “Red diesel future for boaters in the UK”
UK Chancellor Rishi Sunak has shared plans to review the current use of red diesel. The government is set to consult with red diesel users to determine whether continued access to the fuel is justifiable. The consultation will be conducted with a view to remove the entitlement to red diesel use, except for agricultural, rail and non-commercial heating purposes, by April 2022.