Premier Boat Yard in the Midlands

01299 871048 0

UK Red Diesel under attack by EU

  • Neil
  • 24 Feb 2012
  • General
  • Back

BMF Responds to HMRC Red Diesel Announcement


The BMF has been working with HMRC, along with the RYA and IWA, to try to ensure that infraction proceedings against the UK by the European Commission over the use of Red Diesel are avoided.


Howard Pridding, Executive Director of the British Marine Federation said;


‘We are in discussions with HMRC about their proposals for achieving this, but BMF members should note that the proposals as they stand do not affect suppliers, other than a change to the declaration which we are in the process of agreeing. We will, along with other boating partners, continue to push for the best possible outcome for both UK boaters and the leisure marine industry.”


To find out further information and to read how the BMF have been continually working to provide the right solution for Red Diesel, visit the British Marine Federation webpage HERE.


Some this infofrmastion dates back to the changes in 2008, but there are other issues surrounding the use of Red diesel and It's use in UK vessels that arrive in Europe and Belgiunm in particualr who are in fact finding themselves fined for having it.  See next news piece for more on that.


Maybe now is a good time to review those changes from 2008.



The EU Energy Products Directive provides that from 1 November 2008:-


  • The full rate of duty is to be applied to fuel used for “the purposes of  navigation” (which has been reflected in UK law as “fuel for propelling” of private pleasure craft
  • Red diesel at the rebated rate of duty can continue to be used for domestic purposes         aboard a boat such as heating, lighting electricity generation, refrigeration, air    conditioning or hot water;
  • Customers purchasing fuel will be required to make a declaration about their fuel usage; and
  • Fuel suppliers will need to become Registered Dealers in Controlled Oils (RDCO’s)          and will return the duty collected to HMRC.

HMRC has understood the industry’s concerns about the potential difficulties for fuel suppliers in calculating duty and VAT when faced with customers claiming different percentages of fuel used for propulsion.  The BMF, RYA and Inland Waterways Association put significant effort into familiarising HMRC officials with the wide variety of craft that make up the boating market from small sportsboats with minimal domestic fuel use to residential narrowboats on the inland waterways with a high domestic fuel usage.  Following this work, HMRC have confirmed that industry and Government analysis suggests that a split of 60% for propulsion and 40% for domestic use reflects most peoples use and it is therefore likely that many users will declare such an apportionment.  However, where a purchaser knows that the propulsion use may be more or less than the above apportionment split, or a craft clearly has no domestic use, then they must declare their actual intended usage.