UK Responds to EU About Red Diesel Ruling

UK Responds to EU About Red Diesel Ruling

07 February 2019

Following the EU ruling last year on the UK's failure to fulfil its obligations relating to red diesel, HMRC has responded to the Commission and is planning a consultation later this year.

The ruling by the Court of Justice of the European Union stated that the UK had failed to meet the EU requirements for fiscal marking of gas oils and kerosene. This ruling could affect future use of red diesel for leisure boats, with implications for boat owners and boatyard operators.

We have received a letter from HMRC, following a meeting we had with HMRC officials in November, alongside British Marine, Cruising Association, and Royal Yachting Association, to discuss the UK’s response to the European Commission.

The letter thanked the organisations involved for the information supplied since the meeting in November, which had been used to prepare HMRC’s response to the Commission. The UK’s response has now been sent to the Commission. Some of the practical implications outlined were: 

  • Only a quarter of ports and marinas for which HMRC have details have said that they will provide both types of fuel,
  • The length of our inland waterway network and the need for both types of fuel to be available
  • The practicalities of installing new infrastructure in terms of funding, planning, approval and building
  • The safety implications if boats were not able to access the correct fuels at all ports.


HMRC plans to launch a consultation at Spring Statement 2019 on how they will implement the CJEU judgment.

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