| There's bad news for pleasure boaters in
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| | the BMF and other stakeholders to develop
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| the UK as the Government makes known its
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| | the detail of the declaration process and
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| verdict on Red Diesel's future.
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| | apportionment of fuel for domestic use.
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| But first...
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| | Following that consultation process, HMRC
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| What is Red Diesel?
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| | will produce comprehensive guidance.
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| Up until now, UK leisure boaters have
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| | 'Our main concerns were availability and
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| been able to fuel their boats with red
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| | safety,' said Neil Northmore, the RYA's
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| diesel which is subject to lower VAT.
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| | government affairs adviser.
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| Coloured with red dye to distinguish it
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| | 'We were aware that there was a danger
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| from the more expensive variety, red
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| | that some retailers in more remote areas
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| diesel is typically available for around
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| | would simply not bother selling to
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| 40p per litre, less than half the
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| | pleasure boats on the premise that it
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| national average for diesel on the
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| | would be more trouble than it was worth
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| forecourt.
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| | to distinguish between private and
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| The issue.
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| | commercial craft, and then process the
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| In recent years, permission to use red
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| | paperwork.'
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| diesel became subject not only to
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| | Increase in duty.
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| national approval, but also the EU's. The
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| | Howard Pridding, executive director of
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| reason is down to EU policies that bring
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| | the BMF said:
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| into line taxes on fuels and energy, and
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| | 'We are pleased with how HMRC has managed
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| the fact that consent to use red diesel
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| | the consultation process and the position
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| depends on exemption (derogation) from
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| | that they have finally adopted. When
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| these EU rules.
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| | buying fuel, people will be required to
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| The Royal Yachting Association (RYA)
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| | sign a declaration that states whether
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| fought to extend the derogation that
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| | their boat is for private or commercial
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| allowed UK leisure boaters to use lower
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| | use.'
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| duty red diesel. In October 2006, the
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| | It will then be up to HMRC whether they
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| British Government decided to support the
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| | wish to investigate whether the purchase
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| case. However, EU officials failed to
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| | was correct or not, he explained.
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| accept the government's arguments and
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| | The Future of Red Diesel.
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| have decided that the derogation should
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| | On 28 February 2008, HM Revenue & Customs
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| end with effect from the end of December
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| | revealed that from 1 November this year,
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| 2006. There is now a grace period in
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| | boaters will be paying a duty rate of
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| force for the phasing out of red diesel
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| | 56.94 pence per litre, instead of the
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| in the UK. In pleasure craft, red diesel
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| | current rate of 9.69 pence per litre.
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| will remain usable legally until November
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| | Boaters will be forced to keep records of
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| 2008.
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| | all diesel purchases, as it will become a
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| Honesty is the best policy.
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| | criminal offence to have diesel on board
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| Now the RYA and the British Marine
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| | for propulsion that you cannot prove was
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| Federation (BMF) say Her Majesty's
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| | bought at the higher rate of diesel.
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| Revenue and Customs (HMRC) has decided
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| | Diesel bought for use as heating fuel
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| private users can continue to use marked
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| | will still be available at a rebated
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| fuel (red diesel) provided they make a
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| | rate. So to add further complication,
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| simple declaration to the supplier and
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| | there will be a system in place where you
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| pay the full duty rate for heavy oil.
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| | can declare that a proportion of the
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| The Registered Dealer in Controlled Oils
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| | diesel you are taking on is for 'domestic
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| (RDCO) will then be responsible for
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| | purposes'!
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| declaring the duty collected to HMRC.
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| | Only time will tell how this news will
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| What makes the situation less clear is
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| | hit the market, but it's not hard to
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| that fuel which is intended for domestic
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| | imagine it having some impact.
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| use (not for boating) will still be
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| | regularly publishes boating articles in
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| available at the lower tax rate.
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| | addition to listing thousands of boats
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| 'Availability and Safety'.
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| | and yachts for sale and charter all over
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| The HMRC's Dave Fitzgerald confirmed the
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| | the world. Sign-up to TheYachtMarket's
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| core policy had been fixed but that HMRC
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| | newsletter to get the latest marine news
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| would be working closely with the RYA,
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| | and boats delivered to your inbox.
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