HM Revenue & Customs: Excise Notice 554 Details Fuel Duty Collection for Private Craft

We use some essential cookies to make this website work. We’d like to set additional cookies to understand how you use GOV.UK, remember your settings and improve government services. We also use cookies set by other sites to help us deliver content from their services. You have accepted additional cookies. You can change your cookie settings at any time. You have rejected additional cookies. You can change your cookie settings at any time. Find out how to charge and collect excise duty on fuel used in private pleasure craft and fuel used for private pleasure flying. Get emails about this page Print this page 1. Introduction 1.1 About this notice This notice gives information and guidance on procedures to be followed for the charging and collection of excise duty on fuel used: This notice is intended for: The primary law can be found in the Hydrocarbon Oils Duties Act 1979 as amended by the Finance Act 2008 and 2012. This Act also provides for the following secondary legislation: Nothing in this notice changes the law. Registered dealers in controlled oil (Excise Notice 192) Motor and heating fuels general information and accounting for excise duty and VAT (Excise Notice 179) Aviation turbine fuel (Excise Notice 179a) Relief from fuel duty for marine voyages (Notice 263) Excise duty drawback on ship and aircraft oil stores (Excise Notice 172) Diesel used for propelling private pleasure craft can no longer benefit from a reduced rate of duty. It’s subject to duty at the full rate. In Great Britain, a private pleasure craft may continue to use rebated (red) diesel, including rebated sulphur-free diesel and rebated bioblend (a mix of diesel and biodiesel). However, an amount equal to the rebate must be paid on the fuel used for propelling the boat. In Northern Ireland: There’s no change to the duty treatment of petrol in private pleasure craft because this is already subject to the full rate of duty. A commercial craft can use rebated diesel without the need for a written declaration. A qualifying marine craft can continue to claim a full refund of duty under relief from fuel duty for marine voyages . In Great Britain it is illegal to use rebated diesel, biodiesel, or bioblend for propelling a private pleasure craft, unless: Registered dealers in controlled oil, who supply rebated (red) diesel to private pleasure craft in Great Britain, are responsible for paying the full rate of duty on rebated fuel they supply that a customer declares will be used for propulsion. It is expected they will charge their customer an amount equal to the increased duty, then pay the duty to HMRC and keep the declarations made by their customers. In Northern Ireland, a vessel with only one tank must use full duty-paid diesel. If the supplier has registered with HMRC, they can allow a discount, equal to the rebate, on 40% of the fuel supplied, to allow for non-propulsion use. They can then claim back this amount from HMRC. Find out about rates of excise duty . From 1 October 2021, private pleasure craft in Northern Ireland, with one fuel tank (for both propulsion and non-propulsion), cannot use red diesel unless it was put into the fuel tank either in: For example, you can refuel your private pleasure craft with red diesel in Great Britain after 1 October 2021, make a declaration of the proportion that will be used for propulsion and pay duty on that amount, then travel to Northern Ireland with the red diesel already in your fuel tank. If you travel to Northern Ireland having refuelled with red diesel elsewhere, you’re advised to keep documents (such as receipts, logbooks and declarations) to show HMRC where and when you refuelled. If your private pleasure craft in Northern Ireland (including houseboats) has separate tanks for propulsion and non-propulsion uses, you may continue to use red diesel in your non-propulsion fuel tank after 1 October 2021 but your supplier cannot allow any discount on the ‘white’ diesel, because it is all being used for propu