Please select your home edition
Edition
Marine Resources 2019 - Leaderboard

CA responds to decision from the Court of Justice of the European Union over Red Diesel

by Peta Stuart-Hunt 18 Oct 2018 13:21 UTC
CA responds to decision from the Court of Justice of the European Union over Red Diesel © Cruising Association

At the moment almost all diesel sold in British marinas is red diesel, taxed either at a lower rate if some of the fuel is used for heating the boat, or at 100% for the fuel that is used only for propulsion by the engine. In a case launched last year, the EU has argued that the UK should not allow red diesel to be used in this way.

Under EU rules, Member States must apply a "fiscal marker" (red dye in the UK) to diesel which is not taxed at the full rate. The Court of Justice of the European Union has now concluded that Member States may not apply that marker also to diesel which is taxed at the full rate for propulsion, without undermining the purpose of the marker.

Its judgment declares: "that by allowing the use of marked fuel for the purposes of propelling private pleasure craft, even where that fuel is not subject to any exemption from or reduction in excise duty, the United Kingdom has failed to fulfil its obligations... on fiscal marking of gas oils and kerosene". The Court dismissed the evidence from HMRC that ending the use of red diesel would be impracticable, some of which was provided by the Cruising Association.

Judith Grimwade, CA President, said: "We are delighted that the Court has finally delivered a judgment in this case, but given the uncertainties of Brexit, it remains to be seen what the impact will actually be. Whatever the outcome, we will continue to campaign for cruising yachtsmen to be able to travel between countries without being penalised for buying a fuel which is very often the only option available."

No deadline is specified in the judgment and member states are usually given a reasonable period to make the adjustments necessary - which in this case could mean white diesel going on sale in UK marinas - bearing in mind many craft may continue to use red diesel for heating.

However, no-one knows what may happen as a result of Brexit. HMRC is examining this judgment and will announce how and when the UK will adjust its practices in due course.

www.theca.org.uk

Related Articles

A cautious return to cruising
The Cruising Association's RATS group has been hard at work Over the past few months, the Cruising Association's RATS (Regulations and Technical Services) group has been hard at work researching, collating and compiling weekly updates covering the UK, Europe and the Mediterranean, since the outbreak of COVID-19. Posted on 1 Jul
The CA confirms support for Cowes Week 2021
Sponsoring the trophy for the newly introduced Club Cruiser Class After the excitement of announcing its first-ever sponsorship of Cowes Week 2020, sponsoring the trophy for the newly introduced Club Cruiser Class, the Cruising Association (CA) has nonetheless pledged its commitment to supporting the event in 2021. Posted on 10 Jun
Cruising in the EU post 31 December 2020
An issue that has been bubbling away for some time An issue that has been bubbling away for some time is the change in access rules for UK citizens travelling in the EU after the completion of our exit scheduled for the end of this year. Posted on 5 Jun
Cruising Association is pleased to confirm
All forms of watersports can go ahead in England The Cruising Association is pleased to confirm that, from today and subject to local regulations, all forms of watersports, including the use of privately-owned motorised craft, can go ahead in England. Posted on 14 May
And the osCA goes to... Nick Mines!
The Cruising Association's (CA) inaugural Vlog (video log) competition The first-ever winner to emerge from a bumper crop of 15 entries to the Cruising Association's (CA) inaugural Vlog (video log) competition - The osCA, sponsored by MS Amlin Boat Insurance - is Nick Mines on Hejira, a Southerly 135, with Ollie and friends. Posted on 4 May
An update on the future of UK Red Diesel
The Cruising Association's RATS has been in communication with HMRC The Cruising Association's RATS has been in communication with HMRC and confirmed that it is their intention to legislate that red diesel in the UK can only be used in agricultural equipment, on the railways and for non-commercial heating. Posted on 20 Apr
CA launches a topical South West Soundings Podcast
A lifeline for sailors marooned ashore! With cruising sailors firmly anchored ashore in the face of the Covid-19 clampdown, the Cruising Association's (CA) South West Section has launched a new podcast to keep maritime spirits lifted despite not being able to get afloat. Posted on 6 Apr
Covid-19 Restrictions on Cruising - CA RATS Advice
Regulations and Technical Services group publishing online advice to members and the public Worldwide Covid-19 restrictions effectively mean that most, if not all, cruising, is currently prohibited or severely restricted. The situation and the measures being taken by various governments are fast moving. Posted on 31 Mar
CA responds to the Budget Statement
With reference to the use Red Diesel for propulsion The Cruising Association (CA) notes that from April 2022, private pleasure vessels will no longer be able to use Red Diesel for propulsion but will be able and are indeed entitled to use it for on-board heating purposes. Posted on 12 Mar
Demise of CG66 brought forward to end of March
The CA advises sign up to RYA SafeTrx The Cruising Association's Regulatory and Technical Service group (RATS) has today been advised by the Marine and Coastguard Agency (MCA) that the scrapping of the CG66 Safety Identification Scheme has been brought forward from July to the end of March. Posted on 9 Mar
GJW Direct - Yacht 2019 - FooterGrapefruit Graphics 2019 - FooterHighfield Boats - Sailing - FOOTER