Robih
Well-known member
All this talk of “ending the concession” is a bit odd to me, because I understood that whether red or white diesel was used for vehicles depended on whether it was being used as “road fuel” or not. Thus, Farmers, who put red diesel in their tractors, are entitled to do so because a tractor is not primarily a road vehicle. Likewise forklift trucks in yard premises where not taken on the road, and finally boats because they are clearly not using red diesel as road fuel.
I remember this because there was an issue a few years ago where farmers were hauling sugar beet to the factory with the new generation of “fast” tractors (these tractors do 40mph) and Customs were questioning their right to use red diesel because the vehicles were primarily being used as road vehicles. The final argument came down (I think) to whether these tractors had standard field tyres or whether they had fitted “road tyres”.
So, to remove the so called “concession for boats” as far as I can see the government have to change the law such that it is not determined by vehicle use but by some other method. If they don’t then surely farmers (and fork lift trucks and trawlers and council grass cutting machinery and lorries on container ports etc………………) will also all have to use white diesel instead of red.
If the government say well “leisure boats are to use white diesel” then I can see my boat having a LAN fitted on it pretty sharpish with a special lazerette for the server and fax! “No Sir, not a leisure boat but a floating office”
As for VAT, well the rule for boat diesel is nonsense. Because of something strange in the VAT Act we only pay 5% (on small quantities) of red diesel whereas we should pay the full 17.5% rate (farmers do!). So Gordon could go for that and I wouldn’t have such an objection. (The effect would be an increase from 35ppl to 39ppl which is 11%, fair do’s).
So, my message for Gordon is:
1) Leave red diesel law as it is (unless you are also taking on everybody else as well, don’t just stick the knife in to boaters)
2) You can have 17.5% VAT on boat diesel, that gives you some cash and it’s fair enough
Someone from the RYA must read this website I presume?......................
rob
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I remember this because there was an issue a few years ago where farmers were hauling sugar beet to the factory with the new generation of “fast” tractors (these tractors do 40mph) and Customs were questioning their right to use red diesel because the vehicles were primarily being used as road vehicles. The final argument came down (I think) to whether these tractors had standard field tyres or whether they had fitted “road tyres”.
So, to remove the so called “concession for boats” as far as I can see the government have to change the law such that it is not determined by vehicle use but by some other method. If they don’t then surely farmers (and fork lift trucks and trawlers and council grass cutting machinery and lorries on container ports etc………………) will also all have to use white diesel instead of red.
If the government say well “leisure boats are to use white diesel” then I can see my boat having a LAN fitted on it pretty sharpish with a special lazerette for the server and fax! “No Sir, not a leisure boat but a floating office”
As for VAT, well the rule for boat diesel is nonsense. Because of something strange in the VAT Act we only pay 5% (on small quantities) of red diesel whereas we should pay the full 17.5% rate (farmers do!). So Gordon could go for that and I wouldn’t have such an objection. (The effect would be an increase from 35ppl to 39ppl which is 11%, fair do’s).
So, my message for Gordon is:
1) Leave red diesel law as it is (unless you are also taking on everybody else as well, don’t just stick the knife in to boaters)
2) You can have 17.5% VAT on boat diesel, that gives you some cash and it’s fair enough
Someone from the RYA must read this website I presume?......................
rob
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