RED DIESEL: RYA and BMF have welcomed the news that the Government has decided to challenge the European Commission’s position over the use of red diesel for leisure craft. As reported by Boating Business News.

Published 11 years ago, updated 6 years ago

This week Her Majesty’s Revenue and Customs (HMRC) indicated that the UK Government intends to challenge the Reasoned Opinion issued by the EC back in May which requested  that the UK amend its legislation “to ensure that private pleasure boats such as luxury yachts can no longer buy lower taxed fuel intended for fishing boats.”

Gus Lewis, head of legal and government affairs, RYA, said: “The UK Government has for several years supported recreational boating and the industry that serves it over the continued availability of red diesel for use in private pleasure craft in the UK and we are pleased that it has decided that it should challenge the Commission’s Reasoned Opinion.”

Since November 2008, diesel purchased for propelling a private pleasure craft in the UK has been subject to the full rate of duty.

The principal reason why the BMF and the RYA consider that private pleasure craft should be able to continue to use red diesel is to secure the continued availability of diesel fuel for recreational boaters.

They say that if suppliers were obliged to supply only white diesel to private pleasure craft, this would result in many fuel suppliers having to incur significant costs in converting their equipment and it would have a significant impact on the availability of diesel for leisure boaters along the coast.

Conversely, for narrowboats and barge owners on the inland waterways, the availability of diesel at the rebated rate of duty would be significantly reduced even though they are entitled to use it for providing heat and electricity.

See more at: http://www.boatingbusiness.com