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HM Revenue and Customs Brief 68/08


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Issued 31 December 2008

Energy Products Directive: Expiry of the derogations allowing reduced rate duty on fuel in private pleasure craft - RDCO registration

Purpose of this brief

This brief supplements Revenue & Customs Brief 49/08. Its purpose is to inform Registered Dealers in Controlled Oils (RDCOs) who supply red diesel and/or bioblend for use in private pleasure craft how to register for the new scheme.

This brief also provides a reminder of duty rate changes which took effect at the Pre-Budget Report (PBR) 2008.


With effect from 1 November 2008, suppliers of red diesel to private pleasure craft have been required to charge the purchaser the full rate of duty on fuel used for propulsion and pay the duty to HM Revenue & Customs.

RDCOs are required to notify us that they are making supplies of this kind, so that we can issue you with your first duty return in autumn 2009.

Notification procedure

Not all RDCOs supply fuel for use by private pleasure craft, but if you do, or may do so in the foreseeable future, you must notify us as follows. Failure to notify us may render you liable to a civil penalty.

You can notify us by email or by letter and should provide the following information, to allow us to modify your existing RDCO registration details and issue you with a duty return:

  • RDCO registration number
  • name and address of the registered business
  • contact telephone number

To notify us by email, please title your email ‘RDCO Pleasure Craft Notification'.
Alternatively, you can write to us at:

RDCO Pleasure Craft Notification
HM Revenue & Customs
Room 1/37
100 Parliament Street

Please note, these contact addresses are to be used for the sole purpose of the RDCO notification exercise, so please do not send any other correspondence to them (it will not be answered or redirected).

We will send you confirmation of receipt of your notification and, in due course, you will be issued with a revised RDCO certificate which will show you are registered for the new scheme.

Issue of first duty return

You will be sent a new payment return, separate from and additional to, your usual RDCO return showing your RDCO number, on which you will declare the total amount of duty due and sign and date it. The first return and payment by all registered suppliers will cover the 12 month period from 1 November 2008 to 31 October 2009, and you will have a further 21 days to submit the return and payment. We will send you the return in advance of 31 October 2009.

Reminder of PBR duty rate changes

As part of his recent PBR, the Chancellor announced that the full rate of duty for heavy oil would rise from 50.35 pence per litre (ppl) to 52.35 ppl, and the rebated rate applicable to red diesel from 9.69 ppl to 10.07 ppl with effect from 1 December 2008.

We appreciate that RDCOs are still familiarising themselves with the new duty arrangements for private pleasure craft and that the recent duty rate change followed very quickly after the scheme’s introduction. This will be taken into consideration during any future assurance checks.
RDCOs operating the new scheme should note their responsibility to identify and apply any future changes from their effective date. Duty rate changes are usually announced as part of the Chancellor’s PBR and Budget. Details of duty rates can be found on our website or are available from the National Advice Service (NAS) on Tel 0845 010 9000.

Public notice update

The new public notice, covering the use of red diesel for pleasure boating and Aviation turbine fuel (Avtur) for private pleasure flying, should be available in the new year.

If you have any queries please contact the NAS.

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.

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Article Published/Sorted/Amended on Scopulus 2009-01-02 23:03:18 in Tax Articles

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