HM Treasury has published the final outcome of the consultation on reforms to the tax treatment of red diesel and other rebated fuels. The consultation followed the announcement in Budget 2020 that the entitlement to use red diesel would be removed from most sectors from April 2022. This includes the waste sector. Following consultation, HM Treasury has published the final outcome here. They received 400 responses, including there REA’s which can be found here.

While the entitlement to use red diesel past April 2022 will continue to available in agriculture and horticulture, it will not be available for the waste sector. The Government has confirmed continued entitlement to red diesel past April 2022 for the following uses:

  • In agriculture, forestry, horticulture and fish farming. This includes
    agricultural vehicles used for cutting verges and hedges, snow and
    flooding clearance and gritting roads.
  • As fuel to propel passenger, freight or maintenance vehicles designed to
    run on rail tracks.
  • For non-commercial heating. This includes the heating of homes and
    buildings used for other non-commercial purposes, such as places of
    worship and townhalls, and heating (and other non-propulsion uses) on
    permanently-moored houseboats.
  • The commercial boat operating industry, including but not limited to the
    fishing and inland water freight industries and passenger ferries.
  • The travelling fairground and circus industries when diesel is used for
    powering their machinery (including their caravans).
  • Non-commercial power generation, including households who rely on red
    diesel for electricity generation in areas not connected to the electricity
  • Amateur sports clubs as well as all golf courses. This includes activities
    such as ground maintenance and the heating and lighting of the
    clubhouse and changing rooms. Amateur sports clubs will qualify if they
    are registered as community amateur sports clubs (CASCs).