FUEL FOR PRIVATE PLEASURE CRAFT - Update 2 September
HMRC has issued a flyer to RDCOs in advance of formal guidance on the taxation of fuel for use in private pleasure craft: from 1 November 2008, the use of red diesel will continue to be permitted in private pleasure craft, but the proportion of the fuel used for propulsion will be taxed at the full road diesel duty rate (52.35p per litre from 1 October 2008).

A copy of the flyer can be found under the Information tab of this website.

The formal guidance is expected to be issued by HMRC in October.

2 September 2008