| HRMC clarified the way in which additional fuel duty is | | | | propulsion |
| to be collected from the 1st November 2008, at the | | | | Registered Dealers in Controlled Oils (RCDO) will need |
| Southampton Boat Show. It will affect private | | | | to account to HMRC for any additional duty they |
| pleasure craft owners when purchasing red diesel for | | | | receive from recreational boaters. RCDOs already |
| propulsion and to a lesser extent when purchasing | | | | owe a general duty of care to ensure that they only |
| red diesel for heating. How will it work? | | | | make supplies of controlled oil for legitimate uses. |
| Private pleasure craft owners will be able to continue | | | | Residential Boat Owners |
| to use marine red diesel for propulsion use, but at a | | | | Residential boat owners whose primary residence is |
| modified duty rate. They will have to declare the | | | | their boat and hold certain documentation, such as a |
| percentage of fuel to be used for propulsion and | | | | Houseboat Licence, Residential Mooring Licence, |
| domestic use respectively at time of purchase. | | | | Council Tax Bill in respect of the mooring, or other |
| HMRC say “It is for the purchaser to declare the | | | | peripheral documentation, invoices or bills which |
| percentage of fuel used for propulsion. However, | | | | provides proof of permanent residency, they may |
| analysis by both the industry and HMRC suggests | | | | purchase all their fuel at the rebated rate Effect on |
| that a split of 60% for propulsion and 40% for | | | | the Industry |
| domestic use (heating, cooking etc) probably reflects | | | | Availability and supply facilities remain unchanged at |
| most people’s use and it is therefore likely that | | | | present. The increase in fuel costs over the last year |
| many users will declare such an apportionment.” | | | | will undoubtedly hit some areas of leisure boating. |
| Example: 100 litres of marine fuel purchased by a | | | | However from the 1st November with resourceful |
| pleasure craft owner. | | | | boat owners adapting to new marine fuel duty |
| - 40 litres subject to the current rate of duty - 9.69 | | | | legislation and perhaps using their boats slightly less |
| pence per litre (ppl) at 5% VAT | | | | than the current average of 50hrs per year, against a |
| - 60 litres subject to full duty - 50.35ppl at 17.5% | | | | backdrop of possible recession it will be difficult to |
| VAT | | | | measure alone the effect this change in legislation will |
| - The combined effect could well raise the cost of | | | | have on the U.K. boating industry. |
| the fuel from 70p a litre to about £1.27 for | | | | |