In the Spring Budget,
the government announced that it would be issuing a call for evidence
on the use of red diesel. This is so that the government understand
how, where and why red diesel is used throughout the country. Red
diesel (rebated diesel) sales account for about 14 percent of all
forms of diesel sold. The vast majority of sales is commercial
farming and forestry. However diesel sold for domestic and propulsion
on boats is also significant.
There is a popular Brexit myth in boating circles that leaving the EU would mean the duty would automatically be removed and duty free red diesel would extend to propulsion once more. Governments are notorious for collecting tax and duty. Because diesel is now seen as a 'Dirty Fuel' and the need to improve 'clean alternatives' the government will be minded to increase duty to reduce use.
While the original
sales of red diesel were duty free. Then as a result of changes at
HMRC a derogation was granted for domestic use for heating. This
brought about the ubiquitous 60/40 duty split. There is no call for
keeping the 60/40 split and there is a good chance that HMRC will
bring red and white under the same duty charge. Therefore the boaters
as individuals and collectively as associations and trusts. Need to
ensure some input into the collation of the evidence.
More information can be
downloaded. Click Here
You can have your say
by email: ETTanswers@HMTreasury.gsi.gov.uk
You can also have your
say by snail mail: Red Diesel, Energy and Transport Tax Team,
Business and International Tax Group, HM Treasury, 1 Horse Guards
Road, London, SW1A 2HQ
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