UK tax element on Marine Diesel

[Bandit]

In the UK, am I correct in saying that marine mineral diesel (ie no bio content) in effect has a 60/40% split for VAT purposes. So 60% of the diesel is charged as propulsion fuel and incurs a VAT levy at 20% by value and the other 40% of the diesel is deemed VAT free on the assumption it is for heating purposes?

Am I also correct in assuming there is no other overlying duty or tax on the diesel other than the VAT as described above?

 

[PlanB]

I think there may also be duty included at about 11p per litre.

 

[SC35]

It's "fuel duty".
The VAT is 5%

I think that 43ppl figure is the difference between the full duty rate and the rebated rate.

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Propulsion calculation (that is, 60%)​

60 litres @ 70ppl = £42.00
60 litres @ 43ppl = £25.80 (additional duty payable to HMRC)
VAT @ 5% = £3.39
Propulsion total = £71.19

Non-propulsion calculation (that is, 40%)​

40 litres @ 70ppl = £28.00
VAT @ 5% = £1.40
Non-propulsion total = £29.40

Transaction total = £100.59

Fuel used in private pleasure craft and for private pleasure flying (Excise Notice 554)

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[Momac]

In the UK, am I correct in saying that marine mineral diesel (ie no bio content)

If such a thing as marine diesel with no bio content exists (or is available to pleasure craft) which is doubtful .

 

[PaulRainbow]

If such a thing as marine diesel with no bio content exists (or is available to pleasure craft) which is doubtful .

It does exist. It's no/low bio and higher sulphar than road diesel. Only available in seaward facing marinas.

 

[Alicatt]

If such a thing as marine diesel with no bio content exists (or is available to pleasure craft) which is doubtful .

It does exist, we can get it from a fuel pontoon in the canal near the town of Weert in Holland, it's the closest one I know of in our area, bio diesel is not recommended for the engines in our boat. It is also the cheapest diesel in the area.

 

[Momac]

It does exist. It's no/low bio and higher sulphar than road diesel. Only available in seaward facing marinas.

Diesel has had to be ultra low sulphur in Europe and North America since 2006

 

[PaulRainbow]

Diesel has had to be ultra low sulphur in Europe and North America since 2006

Your point ?

 

[SC35]

Your point ?

I thought sulphur levels were being reduced in shipping as well, but still with a higher sulphur content than road fuel.
IMO2020 fuel oil sulphur limit - cleaner air, healthier planet
Seems to be several cupboards full of standards out there.

 

[PaulRainbow]

I thought sulphur levels were being reduced in shipping as well, but still with a higher sulphur content than road fuel.
IMO2020 fuel oil sulphur limit - cleaner air, healthier planet
Seems to be several cupboards full of standards out there.

Yes, that's what i said in post #5

"It does exist. It's higher sulphar than road diesel."

Marine diesel for leisure boats is also FAME free.

It's only available in marinas with sea going boats.

 

[Alicatt]

Yes, that's what i said in post #5

"It does exist. It's higher sulphar than road diesel."

Marine diesel for leisure boats is also FAME free.

It's only available in marinas with sea going boats.

Here it is meant for the commercial barges....

 

[NC11]

I did not know this existed. This would be great if I could find it in Ireland as I have suffered from diesel bug.

 

[PaulRainbow]

I did not know this existed. This would be great if I could find it in Ireland as I have suffered from diesel bug.

A few years old, so not sure how relevant : Marine Diesel 'Must Be FAME-Free'

 

[Seastoke]

I did not know this existed. This would be great if I could find it in Ireland as I have suffered from diesel bug.

North or south.

 

[NC11]

East.

I'd go whereever its available.

 

[Momac]

Your point ?

My point is you said diesel for pleasure boats has higher sulphur than road diesel which cannot possibly be correct as all diesel has had to be ultra low sulphur in Europe including the UK and in North America since 2006.

 

[PaulRainbow]

My point is you said diesel for pleasure boats has higher sulphur than road diesel which cannot possibly be correct as all diesel has had to be ultra low sulphur in Europe including the UK and in North America since 2006.

Road diesel is EN 590 ULSD, 0.001% max
Marine diesel (MGO) is BS 2869 Class D low sulphur gas oil, 0.1% max

Ships oil, not really relevant to us, as leisure users, is, as Post #9 points out is 0.5%

 

[Momac]

Road diesel is EN 590 ULSD, 0.001% max

What makes you think you do not get road diesel at a leisure boat marina (with red dye added )?




Red Diesel: FAQs about Law, Tax, Usage & More!

 

[PaulRainbow]

What makes you think you do not get road diesel at a leisure boat marina (with red dye added )?



View attachment 186038
Red Diesel: FAQs about Law, Tax, Usage & More!

Ah, the old moving goalpost trick

I don't think you cannot buy "normal" red diesel in a marina, in fact, i said in post #5 "Only available in seaward facing marinas". Therefore, inland waterways etc will be selling "normal" red.

The discussion here, which you jumped into with misinformation, is can you get red diesel with a higher sulphur content than road diesel, this was instigated by you, in post #4, continued in post #7 and then in post #16, where you said:

"My point is you said diesel for pleasure boats has higher sulphur than road diesel which cannot possibly be correct as all diesel has had to be ultra low sulphur in Europe including the UK and in North America since 2006."

Post #17 states "Marine diesel (MGO) is BS 2869 Class D low sulphur gas oil, 0.1% max" This is very easily checked, try using your favourite search engine

 

[Refueler]

Oh Dear you guys !!!

I sit here in my hospital bed reading and thinking terrible joke remarks I could make to some !!!

Let me repeat again ... :

There is no g'tee from anyone from that Diesel / Gasoil supplied to you is 100% free of Bio (FAME is included in Bio range). As I have repeated so often - below 5% blend can and is sold as straight fuel. As soon as it hits 5% - it is labelled B5
If you want real Bio free fuel - then please approach Refinery Sales Dept to have them supply you. Please ensure you have suitably sized tankage ready - I suggest a minimum size of 20,000 Metric Ton capacity.