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about this blogRead moreWe are pleased to be able to confirm that HMRC has now announced that red diesel can continue to be used in vehicles taking part in charity tractor runs.
Announcing the restrictions in the October Budget, the Chancellor said eligibility to use red diesel would be limited to agricultural purposes. Earlier this month we reported that the Government accepted ploughing competitions were a legitimate agricultural pursuit, but the status of tractor drives remained in question.
HMRC has now announced that its definition of agriculture will also include "running or participating in events which provide information and education that benefit agriculture, including taking part in charitable activities that promote these industries."
The remaining changes will be in effect from Friday 1 April 2022.
As announced in the Budget, the main change relevant to the countryside is that it will no longer be legal to use red diesel in machinery used in construction. This may impact farmers. Anyone in the industry seeking to supplement their income by using equipment for construction work must completely replace its fuel supply with non-rebated white diesel.
The National Association of Agricultural Contractors has said that it is seeking clarification from HMRC on how operators of machinery are expected to manage any switching between red and white diesel. HMRC has suggested that every trace of red diesel must be removed from the vehicle when making the switch.
The new rules restrict the use of red diesel to the following purposes:
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