HMRC Consultation.

[StewartC]

More bad news on this front.

After November next year, diesel for leisure boat use will be subject to the standard rate of VAT, because...

"The reduced rate of VAT does not apply in any circumstances to a supply of hydrocarbon oil that is subject to a full (unrebated or unrelieved) rate of excise duty."

As the red (if the Govt goes with option A) we use after November 1st 2008 will be unrebated, then full VAT will be applied.

 

[philip_stevens]

Standard rate of VAT is 17.5%, but the government also add Excise Duty/Fuel Tax, that takes the price up to what we see on road diesel.

Will they be adding any Excise Duty/Fuel Tax to the red diesel to bring it up to road diesel prices.

What is the present rate of tax on red? Is it 8% or something?

 

[Whitelighter]

VAT is 5%, duty is 7.44 pence per litre

 

[philip_stevens]

mmmmm. I wonder what the duty will be when they put the 17.5% VAT on red???

The governments are never content with just VAT, they have to have two bites of the cherry. They add duty first, and then add VAT to the price of fuel plus the duty.

 

[Andrew_Fanner]

After a moderately rubbish two week "cruise", isn't Ramsgate great? I'm back to considering jacking in boating. The socialists in HMG and the EU are in the process of restricting the hobby to the rich.

 

[Bobobolinsky]

Hm, I wonder why they did not choose to remove the rail and farming derogations as well?
Farmer Jones filling station and the cost of protecting the marshalling yards perhaps.

Robin

 

[Bobobolinsky]

Oh and actually LPG has a different rate of VAT, as to whether it is going in cars or heating a house, also 4.5p road fuel tax

Robin

 

[porteous]

At the risk of being lynched I thought I'd add a thought. The principle problem with charging us a low rate of duty seems to be the risk of fraud where different levels of duty are charged for the same fuel. As I understand it the dying of diesel is easy and almost costless when done in the refinery.

Low duty green (dyed) diesel for leisure boaters anyone?