While current legislation permits the use of red diesel in any machine which is not a road vehicle, from 1 April 2022 the concession will be restricted to specific categories of vehicles and appliances and only then when they are used for specific purposes.
Permitted uses from 1 April 2022 will extend to:
- agriculture, horticulture, forestry, and fish farming
- rail transport
- fuel used for non-commercial purposes – electricity generation and heating
- community sports clubs and golf courses
- sailing, boating and marine transport
- travelling fairs and travelling circuses
Everyone else who previously used red diesel to power off-road vehicles and equipment will immediately forfeit the entitlement and have to move over to white diesel.
With ‘agriculture’ retained as a permitted use the impact of the new rules on farmers is probably limited, ‘agriculture’ being defined in s336 Town and Country Planning Act 1990 as including:
- horticulture
- fruit growing
- seed growing
- dairy farming; the breeding and keeping of livestock (including any creature kept for the production of food, wool, skins or fur)
- or for the purpose of its use in the farming of land
The main challenge for farmers is expected to be HMRC clamping down on the increasing use of farm vehicles for haulage as opposed to farming purposes. Many agricultural tractors have evolved to such an extent that they are virtually dual-purpose towing units well suited and equipped for use on the roads. There is, however, a marked distinction between ‘agriculture’ and ‘haulage’ the latter including the transportation of goods from one location to another which activity – agricultural tractor or not- would be unlikely to benefit from the abated fuel concession. There are heavy penalties for breaches of the new regulations and any farmer in doubt on how the law applies to them should check with HMRC.
