After the 1st of April 2022, rebated diesel (also known as red diesel) and rebated biofuels will no longer be able to be used as they are now. You will only be able to use red diesel if you are using certain things such as machines, vehicles, vessels and appliances.
If you will no longer be able to use red diesel, and you cannot change to a cheaper alternative, then you will need to look at using diesel or biofuel which has had the full rate of fuel duty paid for.
The rebated fuels affected by this change are; rebated diesel, rebated hydrotreated vegetable oil, rebated biodiesel and bioblend, kerosene taxed at the rebated diesel and fuel substitutes.
HVO is a liquid hydrocarbon which is classified for excise purposes as heavy oil and treated the same as diesel.
Fully rebated kerosene is unaffected by these changes and can be used for all heating uses.
Biodiesel, bioblend and fuel substitutes are already subject to fuel duty when they’re set aside to be used in any of the following: engines, motors and machines.
They will also become liable for fuel duty if they’re used for heating purposes when used to heat premises used for:
- non-commercial purposes — the rebated rate of fuel duty will apply
- commercial purposes — the full rate of fuel duty will apply
When can red diesel be used from 1st April 2022?
You will be able to use red diesel after this date if you are in any of these accepted categories; agriculture, horticulture, fish farming and forestry.
The accepted uses in agriculture that red diesel may be used include, the running or participating in off-road outdoor events, which include agricultural events and ploughing matches. These events demonstrate the skills and exhibit the equipment and animals associated with agriculture and animal husbandry.
Within these sectors, red diesel is only allowed for uses in the following; agricultural vehicles, special vehicles, unlicensed vehicles, mowing machines and certain other machines and appliances. You can use red diesel to travel to and from the place where the vehicle has accepted use, excluding public roads in an unlicensed vehicle.