Red-letter day for commercial and pleasure craft in the UK
Use of red diesel to be maintained for all commercial boat operators and private pleasure craft.
Chancellor Rishi Sunak’s new budget has upheld the right of commercial and private vessel operators in the UK to use low-tax red diesel, says British Marine. Lesley Robinson, CEO of British Marine called it a “red-letter day” for the marine industry.
She continued: “After months of extensive consultation and discussion with HM Revenue and Customs (HMRC), I am delighted that the Chancellor has today announced that the entitlement to use red diesel will be maintained for all commercial boat operators and for private pleasure craft users in Great Britain.”
Red diesel (also known as gas oil, tractor diesel, cherry red, generator diesel and agricultural diesel) is a low-tax and therefore low-cost fuel that is widely used to operate registered off-road vehicles and machinery.
Road vehicle users are not permitted to use it and can face heavy fines if found doing so. Maritime users were also previously banned from using it, but the new ruling upholds a previous revision to the law and allows mariners to continue to benefit from its lower cost.
