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Diesel for use in private pleasure craft

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HMRC is consulting until 9 September 2019 on how it intends to comply with the decision of the CJEU in European Commission v United Kingdom (Case C-503/17) by requiring private pleasure craft to use duty-paid white diesel for propulsion, removing the current option to use rebated red diesel.

Since 2008, operators of private pleasure craft in the UK have been able to use red diesel, with suppliers collecting additional duty to account for the difference between the rebated rate and the full rate for white diesel. Following a legal challenge by the European Commission, the CJEU ruled that the UK was in breach of the fuel marker directive, for effectively allowing red diesel to be supplied, but charged to duty as if it were white diesel.

The government therefore intends to comply with the directive by removing the right of private pleasure craft operators to use red diesel for propulsion and require them to use white diesel, but has not yet decided on an implementation date. The consultation seeks views on the practical implications of the policy change for suppliers of controlled oils, in order to establish whether a period of adjustment is needed before implementation.


Issue: 1454
Categories: News