Tax on Marine Petrol

CJL · 10 July 2003, 10:09

I have recently spoken to a forum member and he brought to the front of my mind a question that most of us just accept.

Why is there tax on marine petrol?

Does anyone know of any justification as to why the Gov give marine diesel a tax break but not marine petrol?

It seems faintly absurd that one is given the tax break and the other is not.

Diesel is used more commercially but these companies can claim the tax back on diesel, petrol and VAT in April anyway cant they?

Why such variation between fuel types?

CJL

Richard B · 10 July 2003, 10:21

Certainly an absurd situation, which I believe the EEC will address - by taxing all marine fuels!

But take a wider view, UK non-road diesel is taxed at a hugely lower rate so heating oil and agricultural diesel are similarly more affordable at the pump. The agricultural exemption is even stranger, because a farmer can drive his red derv burnig tractor on the public highway perfectly legally, but if used red derv in a car, I could be fined and have the vehicle impounded.

Alan Priddy · 10 July 2003, 10:42

The tax laws on the useage of petrol in the marine world are a huge can of worms. Under current laws anyone using a petrol powered craft for any commercial use is eligable not only to claim the tax back but the VAT as well. This cuts the price per litre down to less than red diesel and the goverment do not like it one little bit!
If you are brave enough to make enquiries be prepared for all sorts of questions. What boat do you have, how much did it cost, how can you afford to buy it in the first place, etc etc.

There are people about who do make substancial tax/vat claim backs on this but it also puts them under the spotlight.

If you are completly legal then you should not have too many problems.
Alan P

Nghost · 10 July 2003, 10:52

Did we not get a temporary reprieve on tax on marine diesel?
I think that is the next tax coming.
As for petrol I would love just to be able to buy it on the Thames; not one pump left.
And if you spill 1 drop as you struggle with a jerry can you can be fined for polluting!

Bilge Rat · 10 July 2003, 11:35

Alan P I'm interested to know what you mean by "completely legal" do you mean the acquisition of red diesel and using it to run a boat engine instead of its leagally intended purpose ? or maybe claiming tax back against fuel costs as commercial usage when its really private usage ?

In no way am i condoning anything illegal or saying Alan does anything dodgy at all but to make such a statement he must have seen or heard of dodgy illegal practices happening.

Richard

thewavehumper · 10 July 2003, 12:08

Commercial Diesel is tax exempt cos that is the fuel that powers the commercial marine industry. To the best of my knowledge no ships or tugs run on petrol.

Therefore the Government aren't going to entertain losing the Duty on Petrol and why should they. At the end of the day all we are doing is polluting the environment and why shouldn't we pay for that!

I'll point out now that I buy and burn a lot of Fuel so this is no boaters are bad people statement!.

Gettin the duty back for the commercial use of Petrol is tough and they are not interested in paying for your private pleasure in your boat. So any claim for a refund has gotta be accompanied by a Bona Fide reason. Also you have to be the original purchaser of the fuel and the boat had better be busy. I believe Rescue craft enjoy many benefits

Richard B · 10 July 2003, 12:09

Quote:

Originally posted by Bilge Rat
...seen or heard of dodgy illegal practices happening...

i used to see my next door neighbour lugging cans of red from his shed and pouring them into his van, if that helps!

Garygee · 10 July 2003, 12:45

Hi folks

I think you have hit the problem on the head Richard.

I bet for every gallon that goes into a pleasure boat their is 10 going illegally going into road vehicles.

I also thought the RYA had agreed with the goverment that marine diesel would not be reviewed until 2007, at which point you can bet you life they will tax it.

However does anyone know what tax other contries in EU put on marine diesel, is it the same reat as road fuel

,

Regards Gary

Garygee · 10 July 2003, 13:05

Hi again

been doing some digging and wanted to see if people thought I am right.

Acording to the RYA web site http://www.rya.org.uk/Legal/currentI...ntentID=607807

the tax increase in marine fuel has been delayed till 2007 and they say the increase would have been three fold increase in duty.

Looking at another post which had a link to the cutome & excise site http://www.hmce.gov.uk/business/othe...fuels.htmstoms & excice site

On this site the current tax on marine fules is 3.82 ppl.

Now whan the tax incrase goes on and if it is a three fold increase that makes the tax on marine diesel 11.46ppl, still much lower then petrol.

Do people think this is right or am i missing somthing.
I always assumed that once the tax went on marine diesel it would be the same price as the road fuel but maybe this will not be the case.

Does anyone know, am I right or just hopeful

Regards Gary

dgpw · 10 July 2003, 13:11

I think you will find that allot of people that should have their boats coded do not, or if they do they have equipment missing. Insurance that is not right or the wrong type of transom. It is quite shocking how many people operate with ought coding Alot of these will not be eledgeable to claimthe tax back. Good i supose!

Alan Priddy · 10 July 2003, 13:13

Bilge Rat

sorry there seems to be a misunderstanding. I was only talking about the claimable tax benifits of running a petrol boat for commercial use.
Wavehumper has answer the question in an earlier post

Regards

Alan P

Ribald · 10 July 2003, 13:48

Do those of you on the Forum who run training schools claim back the VAT & tax on the petrol you use in your boats?

Jelly · 10 July 2003, 13:57

I understand that for rescue purposes only on the sea you can claim the tax or is it VAT back.
To do this you must first obtain a document from the customs recognising what the vessels are used for. I understand that the info for this is on the RYA site and only applicable to sea based sites and hten only for the safety craft, not teaching etc.
Jelly

Dirk Diggler · 10 July 2003, 14:18

There is a charter company that give "high performance" powerboat rides in the Southampton area, they used to operate out of Merlin, who claim all the tax and vat back on their petrol.

The down side seems to be that if you want to use the boat for personal use, you have to charter it from yourself at the current rate!