Changes To Red Diesel Taxation Rules Will Affect Many Areas Of Business And The Economy

5th April 2022

WHAT IS RED DIESEL & HOW IS ITS USAGE BEING RESTRICTED?
Red diesel is regular diesel combined with chemical markers and red dye; the dye is added to make it easier to identify. It is only usable in specific cases, and it is actually illegal to use red diesel for driving on public roads.

The latest changes in regulations now mean that red diesel can only be used in approved industries such as the agriculture sector. This is to encourage more industries to invest in cleaner alternatives and improve their vehicles and machinery's energy efficiency. This is part of a bigger target the UK set in June 2019 when it introduced laws ensuring an end to its climate change contribution by 2050. The original goal was to reduce greenhouse gas emissions by 80% compared to 1990 levels. Reaching net-zero emissions by 2050 is the new aim, and changes to red diesel regulations are a key step.

A large portion of businesses that actively use red diesel will now have to look into alternatives. It's key to check your business is on the approved list of sectors before continuing usage.

Who is likely to be affected
Businesses and individuals currently entitled to supply or use rebated gas oil (red diesel) and rebated biofuels.

What uses will still be allowed?
A list of ‘accepted uses' has been published. Sectors given the green light for continued red diesel use include forestry, agriculture, fish farming and horticulture. Certain heat and power generation will be allowed as will fuelling of some boats and track-based vehicles. Traveling fairs and amateur sports clubs receive special dispensation.

Are there any loopholes for contractors?[b]
As with any legislation, the detail is complex. At a glance, there are some exceptions to the ban that invite further investigation, related to activities such as road gritting and certain uses of diggers and cranes. But it all comes back to which sector you are working in, and construction is explicitly blacklisted from red diesel.

The Construction Plant-hire Association (CPA) pushed the government on this and was told by HM Revenue & Customs (HMRC) that accepted uses of red diesel after 1 April "very clearly do not cover construction".

[b]General description of the measure
This measure introduces legislative changes through Finance Bill 2021 and subsequent secondary legislation to restrict the entitlement to use red diesel and rebated biofuels from April 2022 to the following qualifying purposes.:

for vehicles and machinery used in agriculture, horticulture, fish farming and forestry. This includes allowing vehicles used for agriculture to be used for cutting verges and hedges, snow clearance and gritting roads
to propel passenger, freight or maintenance vehicles designed to run on rail tracks
for heating and electricity generation in non-commercial premises - this includes the heating of homes and buildings such as places of worship, hospitals and townhalls; off-grid power generation; and non-propulsion uses on permanently-moored houseboats
for maintaining community amateur sports clubs as well as golf courses (including activities such as ground maintenance, and the heating and lighting of clubhouses, changing rooms etc.)
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
The measure will also extend fuel duty to biodiesel, bioblends and fuel substitutes used in heating, applying the rebated duty rate to non-commercial heating and the full rate of duty to commercial heating. Consequential changes to covering penalties for contravening restrictions on the use of rebated fuels will also be made. The legislation will provide for secondary legislation to enable HMRC to disapply its powers to seize vehicles or other machinery in certain circumstances.

Registered fuel suppliers that switch a fuel tank from red to white diesel will need to flush out the tank and supply lines until no trace of marked rebated fuel remains. This will help to ensure compliance and minimise the risk that white diesel that has had the full duty rate paid on it is contaminated with the red diesel marker.

Policy objective
In June 2019, the UK became the first major economy in the world to pass laws guaranteeing an end to its contribution to global warming by 2050. The target will require the UK to bring all greenhouse gas emissions to net zero by 2050, compared with the previous target of at least an 80% reduction from 1990 levels. The government also launched in 2019 an ambitious new strategy to clean up the air and save lives, given air pollution is one of the biggest continuing threats to public health in the UK.

Red diesel is diesel used mainly for off-road purposes, such as to power bulldozers and cranes used in the construction industry, or to power drills for oil extraction. It accounts for around 15% of all the diesel used in the UK and is responsible for the production of nearly 14 million tonnes of carbon dioxide a year. Red diesel used in the construction and infrastructure building sectors was also estimated to have caused 7% of nitrogen oxide emissions and 8% of PM10 emissions (a type of particulate matter) in London in 2018. 

At Budget 2020, the government therefore announced that it would remove the entitlement to use red diesel and rebated biodiesel from most sectors from April 2022 to help meet its climate change and air quality targets. The tax changes will ensure that most users of red diesel use fuel taxed at the standard rate for diesel from April 2022, like motorists, which more fairly reflects the harmful impact of the emissions they produce. Removing most red diesel entitlements will also help to ensure that the tax system incentivises users of polluting fuels like diesel to improve the energy efficiency of their vehicles and machinery, invest in cleaner alternatives, or just use less fuel.

Background to the measure
Motor and heating fuels are liable to fuel duty, with only fuel taxed at the full rate of fuel duty allowed to be used in road vehicles. Some oils and fuels are taxed at a lower (rebated) rate - historically because fuel duty was intended to be a tax on road vehicles. This includes gas oil (diesel), which is chemically marked and dyed to enable law enforcement agencies to identify it as rebated fuel and detect when the wrong sort of diesel is being used, providing a deterrent to fuel fraud. The colour of the dye means this fuel is called ‘red diesel'. Gas oil intended for use in diesel engine road vehicles, otherwise known as ‘white diesel' (because it has no marker or dye), has a fuel duty rate of 57.95 pence per litre (ppl). Red diesel is entitled to a rebate of 46.81ppl, giving it an effective duty rate of 11.14ppl.

At Budget 2020 the government announced that it was removing entitlement to use red diesel from most sectors, except for agriculture (as well as horticulture, forestry and fish farming), rail and non-commercial heating, from 1 April 2022.

The government consulted last summer to ensure that it had not overlooked any exceptional reasons why other sectors should be allowed to continue to use red diesel beyond April 2022. The outcome of this consultation is set out in the summary of responses to the consultation that has been published alongside Budget 2021.

At Budget 2021, the government announced its decision not to change the treatment of private pleasure craft in Great Britain, where they will continue to be able to use red diesel and pay their fuel supplier the difference between the red diesel rate and that for white diesel on the proportion they intend to use for propulsion. The government response to the summer 2020 consultation also announced that from no later than June this year private pleasure craft in Northern Ireland will have to use white diesel to propel their craft. This will achieve consistency with the 2019 judgment by the Court of Justice of the European Union and ensure the UK meets its international obligations under the terms of the Northern Ireland Protocol to the Withdrawal Agreement. It will also align with fuel use by private pleasure craft in the Republic of Ireland, which should make it simpler for private pleasure craft users to access the fuel they need if they sail between Northern Ireland and the Republic of Ireland (and vice versa).

Alongside that change, the government will introduce a new relief scheme under which private pleasure craft users in Northern Ireland will be able to claim a relief for the proportion of their fuel that will be used for non-propulsion, meaning they will not pay a higher rate of duty than they currently do on this fuel. The changes relating to the taxation of diesel used in private pleasure craft in Northern Ireland will be enacted in separate legislation and a Tax Information and Impact Note (TIIN) will be published for that measure alongside secondary legislation.

Detailed proposal
Operative date
The measure will have effect in relation to any red diesel used from 1 April 2022.

Current law
The Hydrocarbon Oil Duties Act 1979 (HODA) is the UK primary legislation on the taxation of hydrocarbon oils, including defining the different types of oils, excise duty charge, the rebate for heavy oils and associated penalties for misuse of rebated oils. It provides a rebate on heavy oils but this rebate is not allowed for any oil that will be used as fuel for a ‘road vehicle'.

Road vehicles are defined as any vehicle constructed or designed for use on roads, other than any ‘excepted vehicles'. They are currently not allowed to use red diesel and rebated biodiesel in any circumstances, unless they are ‘excepted vehicles' as defined in Schedule 1 to the Act. These excepted vehicles include various agricultural vehicles and specialist vehicles, such as those used in construction, subject to particular conditions on their specification and use. Road vehicles that are not excepted vehicles must use fully duty paid petrol or diesel at all times.

Biodiesel, bioblends and fuel substitutes are subject to duty if set aside for a chargeable use and rebates are provided for in specified circumstances. However, heating is not a chargeable use for these fuels.

Finance Act 2020 made changes to HODA which have not yet been commenced. It amended sections 12 and 14E 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. It replaced section 14F 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. It also made consequential amendments to sections 6AB, 13ZB, 14A, 14B, 14C, 20AAA, 24 and 27 and Schedules 4 and 5, including to give HMRC powers to take samples. Finance Act 2020 provided for all changes relating to private pleasure craft to be brought into force on a day appointed in secondary legislation either in the UK as a whole or in a more limited area of the UK.

There is extensive secondary legislation relating to fuel duty, with around 15 statutory instruments which are relevant to rebated fuels.

Proposed revisions
Finance Bill 2021 will amend HODA to make the changes outlined below:

changes will be made to sections 12 and 27 to replace references to ‘road vehicles' with references to ‘excepted machines'. A new Schedule 1A will replace Schedule 1 and this will specify which vehicles and machines are ‘excepted machines'. These machines will be defined by reference to the type of machine and the purposes for which they are being used. Only ‘excepted machines' will be able to use red diesel and rebated biodiesel. Numerous references to road vehicles throughout HODA will be amended so that they apply instead to ‘excepted machines'
changes will be made to sections 6AA and 6A to make heating a chargeable use for biodiesel, bioblends and other fuel substitutes and provide for rebated rates when used in non-commercial heating
changes will be made to sections 13, 13ZB, 13AA, 13AB, and 14A to 14D to update the legislation covering restrictions on use of rebated fuels and penalties for contravening these restrictions, so that the restrictions and penalties can apply where necessary following the changes in entitlement to use these fuels
consequential amendments will be made to other sections and Schedules of HODA.
In relation to private pleasure craft, Finance Bill 2021 provides for alternative changes to be made to some of the sections amended by Finance Act 2020, depending on whether those amendments have been commenced by the time the Finance Bill comes into force.

The legislation provides that Treasury may make regulations to cover, among other things, transitional provisions. Regulations under this power will enable HMRC to disapply seizure powers where a vehicle or machine is one which has lost entitlement as a result of the change of legislation and certain conditions are met. The fuel remaining in the vehicle, machine, appliance or heating system must have been taken in for a permitted purpose before a change of law (and still being used for the same purpose); and residual traces of marker remaining must be from legitimate fuelling and use before the change of law.

Economic impact
This measure is not expected to have any significant macroeconomic impacts.

Impact on individuals, households and families
The impact of this measure on individuals or households is expected to be minimal because where the government felt that removing entitlements could materially impact on the prices of goods and services households consume (such as heating or sports), entitlement to use red diesel has been maintained.

If individuals or households consume red diesel directly and are not covered by the continued entitlements, they will face increased costs which could impact individuals and their families as they may have less disposable income. Some individuals could be more affected than others depending on their income levels and family circumstances - this will depend on their fuel usage.

Customer experience of those affected by this measure could be negatively impacted where costs increase.

Equalities impacts
HMRC does not hold equalities information on current users of rebated fuels but no equality impacts were raised as part of the consultation, so this measure is not expected to have adverse impacts on any groups sharing protected characteristics under the Equality Act 2010.C

Impact on business including civil society organisations
This measure is expected to have a negligible administrative impact on those businesses and civil society organisations that will lose their entitlement to use red diesel and will need to switch to white diesel, although it will increase their fuel costs. This will include sectors, for example, such as construction, mining and quarrying, ports, manufacturing (e.g. ceramics, steel, timber), haulage (for transport refrigeration units on lorries), road maintenance, airport operations, oil and gas extraction, plant hire, logistics and waste management. Whilst these businesses will need to pay the full duty rate for using white diesel, this measure is expected to incentivise these rebated fuel users to seek to use greener alternatives or use less fuel.

One-off costs will include familiarisation with the changes for those sectors no longer entitled, including costs in running down or removing red diesel and rebated biofuels from vehicles, machinery and storage tanks, and possibly from selling back any excess red diesel stock to fuel suppliers. There are also likely to be costs associated with sourcing other alternative fuels for those sectors no longer allowed to use rebated fuels.

There will be other one-off costs for some fuel suppliers (Registered Dealers in Controlled Oils or RDCOs) who will no longer have customers to sell red diesel fuel to and will therefore need to decommission fuel tanks currently storing red diesel or flush out these tanks if being reallocated for white diesel to ensure compliance. However, the government anticipates that many fuel suppliers will continue to sell red diesel and white diesel to customers. These fuel suppliers could see a continuing saving as they will need to record information for fewer rebated fuel users.

There are not expected to be any continuing costs.

Customer experience could be negatively impacted in the short-term given the work businesses and civil society organisations will need to undertake to switch to white diesel.  Customer experience could see an improvement in future because business administrative burdens would be reduced for fuel suppliers, as there would be a reduction in the need to collect and report data to HMRC and collect and remit tax to HMRC.

HMRC will aim to reduce some of these familiarisation costs by carrying out further pre-implementation publicity to make businesses aware of the changes, including providing guidance to support businesses to ensure they comply with the new rules. HMRC will also allow some latitude to businesses during the transition to help them. So that businesses can use up red diesel taken in before the change, for example, HMRC will have the ability to disapply the liability to seizure of fuel where they can be satisfied that the user has not taken red diesel into the fuel system after the change in rules for usage.

Operational impact (£m) (HMRC or other)
There are no significant operational impacts for HMRC. The reduction in legitimate red diesel usage by around three quarters should reduce the level of illegitimate use of red diesel overall because it will be harder to obtain this for deliberate misuse in road vehicles. This measure may lead to a switch between different fuel frauds, in which case HMRC will reprioritise existing resources.

The changes to HMRC processes, systems and websites as a result of this measure will be negligible.

It is possible that this measure may initially lead to a small increase in the number of appeals to tax and duty tribunals. Although the existing criminal offences and civil penalties for misuse of rebated fuels will remain largely unchanged, as fewer people will now be able to use rebated fuels, more people could commit an offence or become liable to a civil penalty and might appeal this penalty or the seizure of any fuels by HMRC. As the supply of rebated fuels will remain strictly controlled, there is likely to be only a small impact, most likely just after the change in entitlement to use rebated fuels comes into effect.

The supply of rebated fuels is restricted to businesses in the RDCO scheme. There are currently around 3,000 such businesses in the UK. There could be some more tribunal appeals if businesses that commit a criminal offence or receive a civil penalty have their RDCO status removed and appeal against this, though numbers are likely to be very small.

Other impacts
Removing most red diesel entitlements will help to ensure that the tax system incentivises users of polluting fuels like diesel to improve the energy efficiency of their vehicles and machinery, invest in cleaner alternatives, or just use less fuel. These tax changes should therefore have a positive impact on carbon emissions and air quality.

The Ministry of Justice are content there would be negligible extra costs on the justice system arising from any prohibition.

Other impacts have been considered and none has been identified.

Monitoring and evaluation
This measure will be monitored through information collected from fuel duty receipts of red diesel and white diesel, which will help to evaluate trends in fuel usage, and by communicating with affected sectors no longer entitled to use these rebated fuels as well as developers of greener alternatives.

Read guidance about changes to rebated fuel entitlements from 1 April 2022 for more information. See https://www.gov.uk/government/publications/changes-to-rebated-fuels-entitlement-from-1-april-2022

Check when rebated fuel can be used

From 1 April 2022, rebated diesel (known as red diesel) and rebated biofuels will no longer be allowed to be used as they are currently.

You will only be able to use rebated fuel for specific purposes, when using certain allowed:

machines
vehicles
vessels
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.

The rebated fuels affected by these changes are:

rebated diesel
rebated Hydrotreated Vegetable Oil (HVO)
rebated biodiesel and bioblend
kerosene taxed at the rebated diesel rate
fuel substitutes
HVO is a liquid hydrocarbon which is classified for excise purposes as heavy oil and treated the same as diesel.

Fully rebated kerosene is unaffected by these changes and can be used for all heating uses.

Biodiesel, bioblend and fuel substitutes are already subject to fuel duty when they’re set aside to be used in any of the following:

engines
motors
machines
They will also become liable for fuel duty if they’re used for heating purposes when used to heat premises used for:

non-commercial purposes — the rebated rate of fuel duty will apply
commercial purposes — the full rate of fuel duty will apply
When can rebated fuel be used from 1 April 2022
Agriculture, horticulture, fish farming and forestry sectors
You will be able to use rebated fuel in vehicles, machines and appliances for accepted uses if you’re in any of the following sectors:

agriculture
horticulture
fish farming
forestry
Accepted uses for agriculture, horticulture, forestry, fish farming and forestry are explained in the Memorandum of Agreement in Fuels for use in vehicles (Excise Notice 75).

The accepted uses in agriculture that rebated fuel may be used include, the running or participating in off-road outdoor events, which include agricultural events and ploughing matches. These events demonstrate the skills and exhibit the equipment and animals associated with agriculture and animal husbandry.

Within these sectors, rebated fuel is allowed for accepted uses only in:

agricultural vehicles
special vehicles
unlicensed vehicles
mowing machines
certain other machines and appliances
You can 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 also use rebated fuel in agricultural vehicles for:

accepted uses relating to agriculture, horticulture, fish farming and forestry
cutting trees, verges and hedges that border public roads
clearing or dealing with frost, ice and snow (including gritting), or flooding
You’ll also be able to use them for any other purpose on private land where they are ordinarily kept.

If you use rebated fuel in agricultural vehicles, machines and appliances for purposes relating to agriculture (including horticulture, fish farming and forestry), you will also be able to use them for any other purpose on private land where they are ordinarily kept.

If a vehicle allowed to use rebated fuel is transported by another vehicle, you can only use rebated fuel in the vehicle carrying or towing it if that vehicle also qualifies in its own right.

Vehicles used on railways
You can use rebated fuel to propel and stop a vehicle designed to run on a railway, but not on a tramway.

You cannot use rebated fuel to power other machines or equipment used on a railway, such as cooling or heating units in railway freight wagons, unless they are also powered by the engine that propels the vehicle.

Electricity generation and heating for non-commercial premises
You can use rebated fuel for electricity generation and heating for premises that are not used for commercial purposes.

‘Commercial purposes’ means trading in goods or services with the intention of making a profit. It does not include the delivery of a service, where it is intended that any profit made will be used to cover the costs of delivering that service.

Some examples of premises which will not be used for commercial purposes, and for which the use of rebated fuel in electricity generation and heating will be allowed, includes:

domestic homes
premises used to deliver central and local government functions or acts of public administration, for example, NHS hospitals, state schools, town halls, public libraries
places of worship
premises used by registered charities for their primary purpose trading, for example, educational charities delivering education or training, museums and independent schools
The type of activities that take place on these premises can include those relating to the services you provide, and activities that indirectly relate to the carrying out of your service. For example, a cafe selling food and drink in a library is not part of the library service but it enhances the overall experience for the public, and encourages them to make use of it, which also helps to contribute to its running costs.

You can use rebated fuel for electricity generation and to heat premises even if commercial contractors work there, provided they contribute to the running of your service. For example, the provision of services such as school catering and cleaning by commercial contractors does not mean that the premises are used for commercial purposes.

If your premises have different areas used for commercial and non-commercial purposes, you can use rebated fuel for heating and electricity generation for the area of the premises not used for commercial purposes, if a separate heating system or generator is used.

Rebated fuel can also be used for electricity generation and heating including:

accepted uses relating to agriculture, horticulture, fish farming and forestry
on land maintained by a community amateur sports club that is registered with HMRC and on golf courses and driving ranges
travelling fairs and circuses
Registered community amateur sports clubs (CASCs), golf courses and driving ranges
You can use rebated fuel in agricultural vehicles and unlicensed vehicles kept and used on:

land maintained by a club that is registered with HMRC as a community amateur sports club (CASC)
a golf course
a golf driving range
A CASC does not include community clubs that are not registered with HMRC. Find out if you are eligible to register and how to register as a CASC.

You can also use rebated fuel in any machines or appliances (other than vehicles) being used in these venues. This includes heating and lighting buildings, such as clubhouses and changing rooms.

When you’re working on these venues, you can use rebated fuel in special vehicles, such as:

diggers
cranes
You can also use rebated fuel in special vehicles when the vehicle is going to or from a golf course or land maintained by a CASC that is registered with HMRC, where the vehicle is used.

You can only use rebated fuel in mowing machines used on a golf course or driving range, and on land maintained by a CASC. Mowing machines cannot be used on public roads but can be transported by another vehicle to be used at these places.

Where the land, golf course or driving rage is either side of a public road, you can use rebated fuel in an agricultural or special vehicle while travelling between the 2 parts by the shortest possible route, providing the vehicle is licensed to use the road.

Sailing, boating and marine transport
You can use rebated fuel in all types of boat, except for private pleasure craft in Northern Ireland. This includes in their engines and in other machines and appliances permanently on the boat.

You cannot put rebated fuel into the fuel supply of the engine of a private pleasure craft in Northern Ireland.

If you buy rebated fuel for private pleasure craft in Great Britain, you will be required to pay the additional duty on the proportion of the fuel you will use to propel the craft.

Find more information about fuel used in private pleasure craft and the changes in Northern Ireland.

Travelling fairs and circuses
A travelling fair or travelling circus is one that can be dismantled at least once per year and can be transported from place to place.

You can use rebated fuel in machines and appliances to:

power rides
provide electricity and heating for caravan accommodation
You can use rebated fuel in a mowing machine or unlicensed vehicle used by a travelling fair or circus.

What vehicles, vessels, machines or appliances can use rebated fuel for accepted uses
You will only be able to use rebated fuel in certain vehicles or machines for specific accepted uses. Find more information about these accepted uses in ‘when can rebated fuel be used from 1 April 2022’.

Agricultural vehicles
Agricultural vehicles can use rebated fuel for the following accepted uses:

agriculture, horticulture, fish farming and forestry
cutting trees, verges and hedges that border public roads
clearing or otherwise dealing with frost, ice, snow (this includes gritting), or flooding
by a club registered as a community amateur sports club
on golf courses and driving ranges
An agricultural vehicle is a:

tractor
single seat, light vehicle (less than 1,000 kilograms), designed and constructed mainly for off-road use
vehicle licensed only for use between different parts of land for purposes relating to:
agriculture
horticulture
forestry
vehicle constructed and adapted, with built-in or permanently attached handling and processing equipment, to be used for purposes relating to agriculture, horticulture, fish farming or forestry
Special vehicles
Special vehicles can use rebated fuel for the following accepted uses:

agriculture, horticulture, fish farming and forestry
by community amateur sports clubs that are registered with HMRC and on golf courses and driving ranges
A special vehicle is a vehicle designed, constructed and used as set out in Part 4 of Schedule 1 to the Vehicle Excise and Registration Act 1994, but without any weight restriction.

Special vehicles include:

digging machines
mobile cranes
mobile pumping vehicles
work trucks
road rollers
Unlicensed vehicles
Unlicensed vehicles can use rebated fuel for the following accepted uses:

agriculture, horticulture, fish farming and forestry
by community amateur sports clubs that are registered with HMRC and on golf courses and driving ranges
by travelling fairs and circuses
any other circumstances providing the vehicle is using fuel gas for fuel
Unlicensed vehicles include those that are not kept or used on public roads and where you have made a Statutory Off Road Notification (SORN), if required, to the Driver and Vehicle Licensing Agency.

Mowing machines
Mowing machines can use rebated fuel for the following accepted uses:

land maintained for purposes related to agriculture, horticulture, fish farming and forestry
by community amateur sports clubs that are registered with HMRC and on golf courses and driving ranges
travelling fairs and circuses
Mowing machines include vehicles or machines designed only for mowing grass.

Other machines, appliances and unlicensed vehicles
Other machines and appliances can use rebated fuel for the following accepted uses:

agriculture, horticulture, fish farming and forestry
by community amateur sports clubs that are registered with HMRC and on golf courses and driving ranges
by travelling fairs and circuses
Other machines and appliances can use rebated fuel for electricity generation and heating for premises that are not used for commercial purposes.

Other machines and appliances include:

machines or appliances that are not a vehicle, vessel or mowing grass machine
non-road mobile machinery
Vessels
Rebated fuel can be put into any vessel apart from the fuel supply of the engine of a private pleasure craft in Northern Ireland.

If you buy rebated fuel for private pleasure craft in Great Britain, you’ll need to pay the additional duty on the proportion of the fuel you’ll use to propel the craft.

Vessels include all types of boat.