Red diesel reprieve apart from NI

The entitlement to use red diesel will be maintained for all commercial boat operators and for private pleasure craft users in Great Britain, the Chancellor has announced.

In Northern Ireland, however, private pleasure craft will no longer be able to use red diesel for propulsion because of the 2018 Court of Justice of the European Union ruling and the obligations under the Northern Ireland Protocol of the Withdrawal Agreement.

The ‘red letter day’ follows months of consultation and discussion with HM Revenue and Customs (HMRC), by British Marine (BM), the Cruising Association and Royal Yachting Association, who successfully argued that having two colours of diesel would cause fuel supply problems and impact on safe sailing in the UK.

BM CEO Lesley Robinson, said: “This is a big success story for the leisure marine industry and British Marine as the treatment of red diesel beyond April 2022 has been a key issue for our members.”

She thanked HMRC for giving the leisure marine sector certainty in difficult times.

The decision allows for easy refuelling in England, Wales and Scotland for safe sailing and will avoid the logistical and environmental difficulty for the fuel supply industry of changing from red to white diesel. For heating purposes, a vessel with a separate tank can still use red diesel at the lower duty rate.

Change in Northern Ireland is expected to be in force by June.