Red Diesel duty changes are now live
The British Marine Federation has recently circulated guidance to help companies supplying fuel to private pleasure craft following the expiry of the UK derogations to the Energy Products Directive that allowed for a reduced rate of duty on fuel supplied to these craft.
The EU Energy Products Directive provides that from 1 November 2008:-
a) 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;
b) 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;
c) Customers purchasing fuel will be required to make a declaration about their fuel usage; and
d) Fuel suppliers will need to become Registered Dealers in Controlled Oils (RDCO's) and will return the duty collected to HMRC.
The full details of the guidance can be found on the BMF website or by emailing Claire Westbrook on cwestbrook@britishmarine.co.uk
The BMF is continuing to work with HMRC to provide guidance to the industry as these new policy measures bed in. The BMF is receiving many questions from member companies and will build a Frequently Asked Questions section on the BMF website at http://www.britishmarine.co.uk/reddiesel
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