Government consultation on red diesel, ends 30th June

The Government has been running a consultation on the use of red diesel, which opened in March 2017 and closes on 30th June 2017.

The consultation document gives a list of uses of red diesel which includes ships and private pleasure craft, but makes no mention of boat dwellers. The NBTA believes it is important that the Government fully recognises the use made of red diesel by people whose boat is their home, so please respond if you can.

The full rate of tax was introduced in 2008 on the use of red diesel by “private pleasure craft” for propulsion, but not for electricity generation or heating, which continues to be charged at a reduced rate. This made buying and selling red diesel on the waterways more complex for boaters and boatyards alike, with many boatyards imposing a blanket split between the two rather than allowing purchasers to self-declare which is the correct procedure laid down by HMRC.

You can download the consultation document here

Red diesel_ call for evidence – GOV

Responses should be sent to


Red Diesel, Energy and Transport Tax Team, Business and International Tax Group, HM Treasury, 1 Horse Guards Road, London, SW1A 2HQ.

HM Treasury says in the consultation document that:

“At Spring Budget 2017 ( the government announced a call for evidence on the use of rebated gas oil (often called red diesel) in order to improve its understanding of how red diesel is used. Red diesel use makes up over 15% of total diesel use. The supply chain that links end users to the original refinery is regulated, hence government has an understanding of the suppliers and distributors of red diesel. However, the government has less information about end users and the geographic spread of red diesel use. This information is relevant because of the impact diesel consumption has on air quality, especially in urban areas where multiple uses of red diesel may be concentrated in single locations.

The government would like to understand how red diesel use has changed and how it could change in future. A significant proportion of red diesel continues to be used in urban areas, and the government believe that the consumption of red diesel in the agricultural sector has decreased. Despite this, the government recognises the continued importance of red diesel to the agricultural sector. In the case of machinery, the government wants to understand how changes in technology and design have impacted on the use of red diesel. Diesel is being replaced in some road vehicles by alternative fuels, so an improved understanding of the extent that this could become a realistic option for non-road mobile machinery would be beneficial. The government invites evidence on red diesel to explore the quantities used across different sectors and the value of the rebate to those industries which benefit.

This call for evidence is designed to improve the data sources available to government about red diesel use and to contribute to a better evidence base for future policies. It does not imply a change in the government’s view on eligibility criteria for red diesel. Anyone with an interest in red diesel is encouraged to share their views. This includes red diesel suppliers and industries and households who benefit from the use of red diesel”.