Reforms to the tax treatment of red diesel and other rebated fuels: consultation

Consultation description

The government is serious about tackling climate change and improving the UK’s air quality. At Budget 2020, the government announced that it will remove the entitlement to use red diesel from April 2022, except in agriculture (as well as forestry, horticulture and pisciculture), rail and for non-commercial heating (including domestic heating).

The consultation seeks views on whether the government has overlooked any exceptional reasons why other sectors should be allowed to continue to use red diesel beyond April 2022. The document asks for views on the government’s proposals for implementing the changes announced at Budget, and is also seeking further information about the current end uses of other rebated fuels, such as non-aviation kerosene and fuel oil.

Within the consultation document (Page 17) the follow extract has been lifted

"Agriculture 4.3 The government recognises the continued importance of red diesel to the agricultural sector, so announced at Budget 2020 its intention not to change farmers’ entitlement to use red diesel. 4.4 Given the entitlements to use red diesel in forestry, horticulture and pisciculture (i.e. fish farming) are closely connected to the entitlement to use red diesel in agriculture, the government announced that it intends to treat these three sectors in the same way. "

HMRC Excise Notice 75 rebated fuel use on the road within the questions and answers section “Q3. What are purposes relating to horticulture? .........they do not regard as horticulture the landscaping and maintenance of grassy recreational areas, such as playing fields and golf courses, or the grassed areas of parks that are made available for walks, picnics and general recreation”

the removal of rebated fuels from the amenity sector will have an impact of potential costs to maintain parks and open spaces, this is an open consultation