Red Diesel: Agriculture

(asked on 9th February 2022) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will make it his policy to reconsider the Government's changes to the entitlement for farmers' use of red diesel, so that farmers are not required to drain tractors' tanks to refill with white diesel for a single day of ploughing competition, and the following day drain the tank of white diesel and refill with red diesel.


Answered by
Helen Whately Portrait
Helen Whately
Minister of State (Department of Health and Social Care)
This question was answered on 25th February 2022

The Chancellor confirmed at Spring Budget 2021 that the Government will remove the entitlement to use red diesel from most sectors from April 2022, other than for agriculture and a limited number of other users. This will help to ensure fairness between the different users of diesel fuels and that the tax system incentivises the development and adoption of greener alternative technologies.

Agricultural vehicles will be entitled to run on rebated fuel after April 2022 for purposes relating to agriculture, horticulture, forestry and fish farming. They will also be able to use rebated fuel when cutting verges and hedges that border a road, clearing snow, gritting, and clearing or otherwise dealing with flooding.

The activities accepted as falling within the definition of agriculture, horticulture and forestry are defined in HMRC Excise Notice 75. As agricultural shows and ploughing matches provide information and education that benefits agricultural purposes, the Government considers that running or participating in these activities are purposes relating to agriculture, for which rebated fuel may be used in qualifying vehicles and machines, and will be updating Excise Notice 75 accordingly. Rebated fuel can also be used to travel to and from where the vehicles or machines are to be used for these activities.

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