What Is Red Diesel
Red diesel is a type of fuel that is widely used in certain industries and applications, such as agriculture, construction, and marine transportation. It is essentially the same as regular diesel fuel, but with a red dye added to indicate that it is tax-exempt and should not be used for on-road transportation.
In many countries, including the UK, red diesel is subject to a lower tax rate than regular diesel fuel. This is because it is considered to be used primarily for non-road purposes. The lower tax rate is intended to support industries that rely on diesel-powered machinery and equipment.
It is not legal in the UK to use red diesel for on-road transportation, as this would be considered tax evasion. In addition, if a vehicle or equipment is found to have been illegally using it, the vehicle can be seized and the operator may face fines or legal penalties.
It is important to note operators who use it must keep accurate records of its use to comply with tax and environmental regulations.
Here are some key points to keep in mind regarding UK law on red diesel:
- Tax Exemption: Red diesel is subject to a lower tax rate than regular diesel fuel, but it is intended for use in certain industries and applications, such as agriculture, construction, and marine transportation. The lower tax rate is intended to support these industries, which rely on diesel-powered machinery and equipment.
- Approved Uses: It can only be used in certain types of machinery and equipment, such as tractors, bulldozers, excavators, and boats. It cannot be used in any vehicle or equipment that is intended for on-road transportation, including cars, trucks, and vans.
- Record Keeping: Operators who use red diesel must keep accurate records of its use, including the amount used, the date and time of use, and the equipment or machinery used. This is required for tax and environmental compliance purposes.
- Penalties: The use of red diesel for on-road transportation is illegal and can result in fines, penalties, and even seizure of the vehicle. Operators who use red diesel illegally can face legal and financial consequences, and may also be required to pay back taxes and penalties.
Overall, the use of red diesel in the UK is strictly regulated. Operators who use it must comply with the law and keep accurate records to avoid penalties and legal consequences.
For a full guide on the use of rebated fuels in vehicles and machines please consult the governments website.