Tractor Bracket
Is this strictly legal ?
Hi Folks,
As I own and operate a narrowboat, which has stopped sinking, by the way, I turn my attention to the fact that the "red" deisel used was inthe recent past in the same taxation bracket as agricultural deisel.
This being no longer the case, as some busy-body in the Treasury, with nothing better to do with his/her time, bunged more tax on it.
OK, I know that folks that operate deisel boats mysteriously all have deisel cars, as the odds against having your car fuel checked are near zero.
So.
I am lucky in having a long-standing good freind. A farmer with a bulk tank of the stuff, only taxed at the rate for tractors etc.
A few jerry cans of that, then, and bung it in the boat.
This is clearly tax avoidance, not evasion, but is it legal I ponder ?
Or do I say to myself "tough, Mr taxman" !
Any notions ?
Bob
In recent years, permission to use red diesel became subject not only to national approval, but also the EU's. This is because the EU has regulations to ensure a harmonisation of tax rates on fuels and energy products, and permission to use red diesel rests on an exemption (or 'derogation') from the EU regulations.
The Royal Yachting Association (RYA) fought to extend the derogation that allowed UK leisure boaters to use lower duty red diesel. After much lobbying, the British government agreed in October 2006 to support their case. However, EU officials failed to accept the government's arguments and have decided that the derogation should end with effect from the end of December 2006. There is now a grace period in force for the phasing out of red diesel in the UK. It will be legally usable in leisure craft until November 2008.
On 28 February 2008, HM Revenue & Customs revealed that from 1 November this year, boaters will be paying a duty rate of 56.94 pence per litre, instead of the current rate of 9.69 pence per litre.
Boaters will be forced to keep records of all diesel purchases, as it will become a criminal offence to have diesel on board for propulsion that you cannot prove was bought at the higher rate of diesel.
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