HM Revenue and Customs Brief 52/08
Submit Articles Back to Articles
Issued 17 October 2008
VAT on fuel used for propelling private pleasure craft and private pleasure
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
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
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.
The VAT (Reduced Rate) (Supplies of Domestic Fuel or Power) Order 2008 (SI
2008/2676) comes into effect on 1 November.
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updated regularly and may be out of date at time of reading.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