Reforms for the use of red diesel (rebated diesel) and rebated biofuels came into effect on 1st April. These changes will affect businesses and individuals currently entitled to supply or use red diesel (rebated diesel) and rebated biofuels.
The measure is part of the government’s aim to bring all greenhouse gas emissions to net zero by 2050. The entitlement for their use has now been restricted to the following qualifying purposes:
- For vehicles and machinery used in agriculture, horticulture, fish farming and forestry
- To propel passenger, freight or maintenance vehicles designed to run on rail tracks
- For heating and electricity generation in non-commercial premises
- For maintaining community amateur sports clubs
- As fuel for all marine craft refuelling and operating in the UK (including fishing and water freight industries), except for propelling private pleasure craft in Northern Ireland
- For powering the machinery (including caravans) of travelling fairs and circuses.
You will now only be able to use rebated fuel for specific purposes when using certain allowed machines, vehicles, vessels and appliances. If you will no longer be able to use rebated fuel, and you cannot change to a cleaner alternative, you’ll need to use diesel or biofuel which the full rate of fuel duty has been paid for.
Certain categories of vehicle are excluded and can therefore use red diesel if their design and use meet specific conditions. You may use red diesel in your vehicle if you do not keep or use it on a public road, providing:
- Your vehicle is not licensed by the DVLAto use the road
- You have made a Statutory Off-Road Notification (SORN) to the DVLA, if you are required to.
You can also use rebated fuel to travel to and from the place where the vehicle has an accepted use, except on public roads in unlicensed vehicles.
You can find more information about the reform here: Reform of red diesel and other rebated fuels entitlement – GOV.UK (www.gov.uk)
You can find more information on when rebated fuels can be used here: Check when rebated fuel can be used – GOV.UK (www.gov.uk)
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