HMRC has issued Excise Notice 554 which contains details about fuel used in private pleasure craft.
For Northern Ireland (NI), private pleasure craft users will no longer be able to use red diesel to propel their craft, but the deadline date for this has been extended to October 1. This gives more time for private pleasure craft to use up red diesel in NI and their fuel suppliers to implement the change from red to white diesel.
There will be a new relief scheme on non-propulsion fuel for heating and power generation – see paragraph 2.3 of the Notice.
The CA's Regulations and Technical Services group (RATS), has pointed out that pleasure craft from NI may travel to Great Britain and fill up with red diesel. RATS advice is to keep up-to-date all receipts, logbooks and engine hours, to show HMRC where and when you refuelled.
For England, Scotland and Wales, the current red diesel position stays the same. Diesel used for propulsion is taxed at the full duty rate, as for road diesel. Red diesel to be used for heating, lighting and power generation may be purchased at the rebated rate. RATS has suggested that purchasers should be able to give the exact percentage to be used for propulsion and heating and not necessarily the suggested HMRC 40/60 split.
The full details on the procedures and purchase of marked gas oil (red diesel), including the rare situation of a vessel having a separate tank for heating, are in Chapter 4 of Notice 554. HMRC has been contacted for clarification on certain points and RATS awaits its reply. Further guidance is due in July.
Full details of the fuel regulations are in the May 2021 Excise Note 554 which can be read here.
2 June 2021
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This web page has been prepared voluntarily by the Cruising Association, its members and others and they and it have tried to ensure that the contents are accurate. However, the Cruising Association, its employees, contributors and relevant members shall not be liable for any loss, damage or inconvenience of any kind howsoever arising in connection with the use of this web page, save to the extent required by applicable law.
Disclaimer This web page has been prepared voluntarily by the Cruising Association, its members and others and they and it have tried to ensure that the contents are accurate. However, the Cruising Association, its employees, contributors and relevant members shall not be liable for any loss, damage or inconvenience of any kind howsoever arising in connection with the use of this web page, save to the extent required by applicable law.