"Private pleasure navigation" means use for navigation in a craft for any purpose that is not commercial, and includes use in any craft that is hired out for such purposes. It does not, however, include the transportation of passengers on cruises and other recreational voyages where the craft is operated and crewed by a commercial operator.
From 1st November, unmarked diesel (DERV) should be used for private pleasure navigation where possible. It is recognised, however, that DERV will not, in the short term at least, be available at many fuelling points around the coast and on inland waterways. For this reason, provision was made in the Finance Act 2008 to allow the use of marked gas oil, subject to payment of the balance of the mineral oil tax on the fuel used (i.e. the difference between the tax calculated at the propellant and marked gas oil rates).
Owners of craft used for private pleasure navigation will be required to make a return, at the end of each year, of the quantity of marked gas oil purchased in that year, and to pay mineral oil tax on that quantity at the rate of 32.069cent per litre (the current difference between the propellant and marked gas oil rates). A Notice will issue early next month containing details of the return form and guidance for the making of returns and payment.
The operation of this arrangement will be kept under review.
It is the responsibility of the fuel purchaser to make a declaration in writing about the amount of fuel being purchased for propulsion. A simple declaration that incorporates the following wording will be required.
“I declare that 60% of the fuel purchased will be used for propelling a private pleasure craft”.
The Declaration must be signed and dated by the purchaser. The RDCO supplier must ensure that the purchaser’s name and address is noted in his normal records.
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