RED is DEAD

[Old Harry]

Chancellor has just said so

 

[awol]

Not quite. Fishing is exempt so red has to be available and yachts can use it if they pay the tax. Still illegal in EU. 2 years to find the way round.

 

[AndrewB]

So now do we get a rash of mobos registering as fishing boats - like last time this happened, was it 30 years ago?

 

[C08]

So will lots of outboard engines be with E10!

 

[laika]

So will lots of outboard engines be with E10!

So that's where all the filched outboards go. Lots of dodgy people in Leyton.

 

[Seven Spades]

So listening to the budget he says he is going to ban red because it is one of the UK's biggest poluters. Well that's not us. He is exempting heating oil and farms so who is left?

 

[Elessar]

Chancellor has just said so

quite the opposite

2.232 Red diesel: Prohibition of use for propelling private pleasure craft – Private pleasure craft already pay the standard white diesel rate for propulsion. They will still be entitled to use red diesel for their heating use. Where they have one tank for propulsion and heating, the government will explore options that prevent them from having to pay a higher rate of duty on their heating use than they would otherwise have to pay. Details on the implementation of this power will be set out in due course.

 

[sailorbenji]

So listening to the budget he says he is going to ban red because it is one of the UK's biggest poluters. Well that's not us. He is exempting heating oil and farms so who is left?

Construction machinery, back-up generators etc.,

 

[Seven Spades]

ah so construction machinery is his target.

 

[sailorbenji]

ah so construction machinery is his target.

Yes I imagine it's one of the key targets, you don't have to look around too far to see how polluting some of that machinery is....and with red diesel being so cheap (relatively) there's no incentive to modernise them...I think that's what they're trying to drive with the change,

 

[Biggles Wader]

Yes I imagine it's one of the key targets, you don't have to look around too far to see how polluting some of that machinery is....and with red diesel being so cheap (relatively) there's no incentive to modernise them...I think that's what they're trying to drive with the change,

I would agree but surely the exact same applies to farm machinary which will not be affected.

 

[sailorbenji]

I would agree but surely the exact same applies to farm machinary which will not be affected.

Factually correct, but now we're in the realms of politics....

 

[JumbleDuck]

Anyone know if red diesel is to continue or just the duty relief - which I believe fishermen can already claim back if they have to buy white diesel?

 

[bedouin]

I would agree but surely the exact same applies to farm machinary which will not be affected.

His justification was about air quality in cities. Not so many farms there

 

[chrishscorp]

Reading the Overview of tax legislation tagged alongside the 2020 budget, there will be a consultation later this year. However with private pleasure craft it is quite clear we are not going to be allowed to use Red for propulsion. They will advise on an implementation date.

Proposed revisions Finance Bill 2020 will:
• amend sections 12 and 14E of HODA to disallow the rebates that apply to diesel, biodiesel and bioblend that are not used for road vehicles on the fuel used for propelling private pleasure craft. In practice such craft have not been benefiting from this rebated rate on the fuel used in propulsion as they have been paying the additional duty to ensure they pay the full rate
• replacing section14F of HODA to create new penalties for using marked fuel for propelling a private pleasure craft similar to those that exist when marked fuel is used in road vehicles
• make consequential amendments to sections 6AB, 13ZB, 14A, 14B, 14C, 20AAA, 24, and 27 and Schedules 4 and 5 of HODA. This includes giving HMRC powers to take samples
• provide for secondary legislation to mitigate the impact of the measure on permanently moored houseboats
• amend Schedule 7A to the Value Added Tax Act 1994 to provide for the removal, if necessary, of the reference to marked fuel used in private pleasure craft in respect of which a declaration has been received
• provide for the changes to be brought into force on a day appointed in secondary legislation, if necessary, and to the extent required to meet our continuing international obligations.

 

[Muddy32]

Good job I have managed to get 140l of red in store with full tanks as well.

Presumably there will always be at trace of red dye, left in tanks, so how will they prosecute?

 

[chrishscorp]

I have been running on white for the last year and it doesnt look 'red' anymore, i think after this year it will look pretty clear, whether there is any chemical marker remaining is a very good question, I think it will depend how a test is done, is it a visual one or more detailed one that is perhaps a question that the RYA might wish to persue during this upcoming 'consultation'.

 

[Robin]

I thought he said changes will apply in 2 years not immediately.

 

[chrishscorp]

Robin, from the way i have read it I think they will put the meat of it in this years finance bill, have a consultation then announce a start date which I think requires a Statutory Instrument to make it law.

I think they are hoping to nett some £2.4Bn from this crack down on red, its fairly quick and easy way to get some revenue which they will be looking for if they are up for spending £600Bn

 

[LittleSister]

I think I might use my existing 121 litre tank for running the Ebersplutter on red, and install a new 5 litre tank for the engine's duty paid fuel.