In 2020, the UK Government announced that it would remove the red diesel entitlement for many industries, including the leisure marine sector, from 1 April 2022.
Following extensive lobbying from British Marine and other industry bodies, the Government subsequently confirmed that it had reversed its earlier decision and would continue to allow vessels to use red diesel for the purposes of propulsion. This includes hire boats, which can continue to use red diesel after 1 April 2022. It did, however, confirm that plans to remove the entitlement from other sectors and for some additional purposes would continue - meaning that marine businesses will not be able to use red diesel to power their plant and machinery from 1 April 2022.
This guidance document has been prepared by British Marine and TYHA. It is designed to help our members understand the changes and what they need to do to remain compliant with the legislation. It will help you to understand the circumstances in which red diesel and alternative types of fuel can be legally used from 1 April 2022 and HMRC's approach to enforcement.
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