HMRC Announcement on the use of Red Diesel in Private Pleasure Craft

On 21st February, the HMRC issued draft legislation to take effect from 1st April, 2012, which HMRC describes as follows:-

“The measure provides that red diesel for use as fuel for propelling private pleasure craft can only be used in UK waters. All purchasers of red diesel for use as fuel for propelling private pleasure craft will be required to sign a declaration to that effect. All purchasers will be made aware that if they travel outside UK waters they will be subject to the restrictions and prohibitions of other Member States”.

The background to this is that the European Commission has challenged the UK practice of allowing the use of red diesel to propel private pleasure craft despite the condition that full duty is paid. This proposed legislation is an attempt to reduce the likelihood of such litigation. As it stands, this measure should have no impact on members sailing in UK waters only, but it will be prejudicial to those members wishing to sail outside of UK waters, and creates considerable practical problems.

UPDATE

For the very latest on this issue here is a link to an interview with the RYA's Gus Lewis which clearly explains the present postion.