By now, we feel that almost everybody knows that the EU have rejected the UK Government’s application to renew the UK’s derogation on red diesel for private recreational boaters. The BMF and RYA have met with HM Revenue and Customs officials to discuss the way forward now the decision has been made.
When the law is finally enacted in the UK, companies will not be able to sell red diesel to leisure users. This will require companies to put in the infrastructure to stock and supply low sulphur diesel – the same as sold on the high street. However, until the law is implemented boat users will be able to continue to use lower duty red diesel.
Although the derogation officially has ended there will be no immediate impact on the industry. The Government must consult stakeholders about the changes and assess what measures are necessary, how to enforce them and in what timeframe this will take place. It is obvious that there is a need for a clear transitional period in which to implement the changes.
The BMF and the RYA will be pressing for the longest transitional arrangements so watch this space……..