Tax relief on Red Diesel also known as Gas Oil is to be abolished for most sectors in two years however Farmers and Agricultural users will retain it. Red diesel is typically used in agriculture and is taxed at 11.14p a litre compared to 57.95p a litre for standard diesel.
The move is designed to clean the air by making polluting diesel less attractive
The Government will remove the tax rebate around Red Diesel, which allows some industrial users of diesel to pay a reduced tax duty on the fuel, after years of pressure. The Chancellor confirmed reduced tax will now end in two years’ time – although businesses working in agriculture, fishing, rail and heating industries will continue to be exempt for the foreseeable future.
Currently, it looks like the Construction industry will suffer, the move to pay the full 57.7p/litre rate will not come into place for two years in order to give the construction industry and others time to prepare.
At Birmingham Fuel Oils our advice to our customers in the West Midlands, Warwickshire, Worcestershire, Staffordshire, is to take full advantage of the rebate still available, you have 2 years to take full advantage of the reduced tax on Red Diesel. Call:0121 382 6262 for sales or email: email@example.com