Font Size

HM Revenue and Customs Brief 52/08

 By

HM Revenue and Customs -Tax Authorities

Tax Articles
Submit Articles   Back to Articles

Issued 17 October 2008

VAT on fuel used for propelling private pleasure craft and private pleasure flying

The reduced rate of VAT will continue to apply to supplies of fuel oil, gas oil and kerosene used as fuel for propelling private pleasure craft and kerosene used as fuel for private pleasure flying after 31 October 2008. This rate applies even though the derogations allowing reduced or nil excise duty rates have expired.

Background

The reduced rate of VAT applies to supplies of fuel oil, gas oil and kerosene, which are used for domestic or charity non-business purposes, provided that the goods benefit from a rebated rate of excise duty. This includes supplies of not more than 2,300 litres, which are deemed to be supplied for domestic use.

However, from 1 November 2008:

  • heavy oil (mainly red diesel, which is a gas oil) used as fuel for propelling private pleasure craft
  • kerosene (avtur) used as fuel for private pleasure flying

Will effectively attract the full rate of excise duty (see Revenue & Customs Briefs 49/08 and 50/08). To enable the reduced VAT rate to continue, the excise duty criterion will be removed from these particular supplies.

Legislation

The VAT (Reduced Rate) (Supplies of Domestic Fuel or Power) Order 2008 (SI 2008/2676) comes into effect on 1 November.

Further information

Further information can be obtained from our website or through the National Advice service on Tel 0845 010 9000. VAT Notice 701/19 Fuel and power will be updated in due course.


About the Author

Crown Copyright 2008.

A licence is need to reproduce this article and has been republished for educational / informational purposes only. Article reproduced by permission of HM Revenue & Customs under the terms of a Click-Use Licence. Tax briefs are updated regularly and may be out of date at time of reading.



Follow us @Scopulus_News

Article Published/Sorted/Amended on Scopulus 2008-10-20 09:19:44 in Tax Articles

All Articles

Copyright © 2004-2019 Scopulus Limited. All rights reserved.