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Red Diesel

by argonaut » 01 Sep 2020, 09:07

In case you are unaware

British Marine and the Royal Yachting Association have once again urged boaters to have their say on the proposed changes to the red diesel entitlement, through the consultation ‘Reforms to the tax treatment of red diesel and other rebated fuels’. HMRC intends to remove the entitlement for private pleasure craft to use red diesel for the purposes of propulsion only, and this measure is set to come into force from April 2022. British Marine has also created its own survey here.

https://www.surveymonkey.co.uk/r/8MS3FY2
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by MartynG » 03 Sep 2020, 20:02

It's done deal. Consultation is just a formality.
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by Ianfs » 03 Sep 2020, 21:01

Interesting situation.

I thought that the UK had to comply with the Court of Justice of the European Union, I think that's who they are. They ruled that it is contrary to the Fuel Marker whatever it's called, for the UK to allow marked (i.e. Red) diesel to be used to power private pleasure vessels. I think this was back in 2018, anyone know if that's correct? It's ok to use Red to power the house i.e. heating lighting, cooking etc., but not to propel a vessel. It's well known that many UK boat owners powered by diesel engines with only one or two tanks for power claim the allowance given for household use. This is because they don't have a specific tank for the "domestic use". Therefore it's split at the pumps on the understanding that the boat owners are telling the truth.

For those who don't know, Red Diesel is no different to ordinary diesel (they call it white, but its not white) it just has a die in it, that's all, so that anyone policing its use can see immediately that big brother is watching you!

Although we have left the EU we still have to comply, not sure when but I think it's later in the year. I did read that the Gov. are exploring ways in which to prevent those who have only tanks for propulsion from paying the higher rate, but I wont hold my breath. This Government does make U turns, sometimes they are good, sometimes not, but to lose over 2 million votes from diesel boat owners, when the revenue from most who only have propulsion tanks is pretty insignificant in the overall scheme of things would I'm sure be considered.

Then of course comes the arrangement for visiting EU countries once Covid and the leaving agreements have been put in place, when we have agreed private boats can still use Red Diesel in the UK!!! What then?
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by MartynG » 04 Sep 2020, 18:36

UK boats visiting mainland Europe have had the issue of the wrong coloured fuel for a while (mostly an issue in Belgium).
Many boat owners think there is no justification for a duty break on diesel engined boats . Owners of Petrol engined boats have always paid full duty for fuel.

The present proposals are not connected with the EU ruing (but may be influenced by it). The government are cutting back on the legitimate use of red diesel in sectors such as construction in order to raise more tax revenue but primarily to encourage measures to improve fuel efficiency .
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by argonaut » 04 Sep 2020, 19:50

I have seen on ‘Mart day’ a Customs & Excise van parked on main dual- carriageway, pulling in all the farmers in their Range Rovers ..... they dip the tank, any trace of red dye and car is confiscated.

I have a neighbour who has containers of a Red Diesel dropped off, he runs it through activated carbon filter and it turns clear .... though I have read that it will still fail any C&E test.
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