Government reveals plans for red diesel

Following talks with HM Revenue and Customs (HMRC) yesterday (26 July) it looks possible that changes in the pricing of marine diesel will not have an adverse affect on its availability to recreational boaters.
HMRC have prepared a number of options for the implementation of the new regime for duty payments on red diesel used by private recreational craft. According to officials, its preferred option is to retain the red diesel pumps for both recreational boaters and commercial operators to use. Recreational boaters will have to pay the full duty rate. Commercial operators will continue to get the current reduced and exempt rates of duty.
Speaking today Neil Northmore, RYA Government Affairs Adviser said: ‘This is good news for recreational boating. HMRC have taken on board all the key issues that we presented to them including tank cleaning, availability and safety issues, and have incorporated them into the proposed options. Their preferred option takes direct account of the concerns that we have voiced over availability.’
A public consultation process will open sometime in the week commencing 30 July which will lay out all the options. Members of the public, boating organisations and the marine industry will be invited to make their comments.
A link will be set up on the RYA website to the Government’s site once the consultation has opened.
The RYA and BMF (British Marine Federation) have asked for a full explanation as to why recreational boaters must pay the full road duty rate for marine diesel and HMRC have agreed to provide this.