FAQs: What Do the Changes to Red Diesel Legislation Mean for Me?

Many of our customers are affected by the changes in the law governing the use of red diesel and other rebated fuels. If you’re unsure how the changes affect you or your customers, take a look at these FAQs:

1. What fuels are affected by the new legislation?

  • rebated diesel
  • rebated Hydrotreated Vegetable Oil (HVO)
  • rebated biodiesel and bioblend
  • kerosene taxed at the rebated diesel rate
  • fuel substitutes

2. What fuels can I use instead of rebated fuels?

You’ll have to use white diesel or biofuel that the full duty applies to.


3. Can I still use fully-rebated kerosene for heating purposes?

Fully-rebated kerosene can still be used for all heating applications.


4. How do the changes affect other fuels used for heating purposes?

Biodiesel, bioblend and fuel substitutes may or may not be affected by the changes when they’re used for heating purposes. This depends on the status of the heated property as shown below:

  • non-commercial purposes — the rebated rate of fuel duty will apply
  • commercial purposes — the full rate of fuel duty applies

5. What industries can still use red diesel and other rebated fuels?

You can still use rebated fuel in certain vehicles, machines and appliances for the specified uses if you’re in any of these industries:

  • agriculture
  • horticulture
  • fish farming
  • forestry

6. What vehicles, machines and appliances can the exempt industries use red diesel/rebated fuel in?

Each industry is subject to different exemptions as follows:

Agriculture

Vehicles the exemptions apply to:

  • tractors
  • single-seat, light vehicles (less than 1,000 kilograms), designed and constructed mainly for off-road use
  • vehicles licensed only for use between different parts of land for purposes relating to:
    • agriculture
    • horticulture
    • forestry
  • vehicles 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

Tasks that the specified agricultural vehicles may be used for:

  • agricultural activities, 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
Special vehicles

Special vehicles include:

  • digging machines
  • mobile cranes
  • mobile pumping vehicles
  • work trucks
  • road rollers

Tasks that the specified vehicles may be used for:

  • agriculture, horticulture, fish farming and forestry
  • by community amateur sports clubs that are registered with HMRC and on golf courses and driving ranges
Unlicensed vehicles

Vehicles the exemptions apply to:
Unlicensed vehicles are vehicles for which you have registered a Statutory Off Road Notification (SORN) with the DVLA if required to do so for that type of vehicle.

What the special vehicles may be used for:

  • 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

What other vehicles and activities can still use rebated fuels?
There are certain other specialist vehicles that may still use red diesel or other rebated fuels. These vehicles include mowing machines, appliances that are not a vehicle or vessel, leisure vessels in Northern Ireland, vehicles used on railways and non-road machinery. To find out more about the exemptions that apply to these vehicles, please visit the government’s website: https://www.gov.uk/government/publications/changes-to-rebated-fuels-entitlement-from-1-april-2022/check-when-rebated-fuel-can-be-used


7. How can I save money if I have to pay the full duty on fuel?

  • Increase your organisation’s fuel efficiency by installing a fuel management system
  • Buy fuel in bulk by using larger storage tanks. Browse our range of storage tanks. We can also make bespoke fuel storage tanks with a capacity of up to 100,000 litres
  • Maintain existing fuel storage tanks to reduce the risk of contamination, spills and leaks

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