Use of red diesel for boaters - No Change

Reforms to the tax treatment of red diesel and other rebated fuels March 2021

After further consultation, the Government has decided that leisure craft will not be affected by the reforms to the tax treatment of red diesel and other rebated fuels.

Government response

Following consultation, the government has decided to maintain the entitlement to use red diesel beyond April 2022 for all commercial boat operating industries, including but not limited to the fishing and inland water freight industries.

The government has decided not to change the treatment of private pleasure craft in Great Britain, where they will continue to be able to use red diesel and pay their fuel supplier the difference between the red diesel rate and the white diesel rate on the proportion they intend to use for propulsion.

In Northern Ireland, private pleasure craft users will no longer be able to use red diesel for propelling their craft.