A guidance note from HM Revenue & Customs confirms that from 1st April 2022, rebated diesel (known as red diesel) and rebated biofuels will no longer be allowed to be used as they are currently.
It also confirms that biodiesels and hydrotreated vegetable oil (HVO) will be given no special tax treatment to encourage their use, even thought they cause substantially less pollution. They are currently taxed at the same rates as DERV and will contionue to be so.
The HMCR note confirms that the agriculture, horticulture, fish farming and forestry sectors will still be allowed to use rebated red diesel. So will sports clubs and golf clubs, travelling funfairs and all types of boat (except for private pleasure craft in Northern Ireland, for some reason).
Construction machinery digging a hole or lifting a load on a golf course or engaged in silviculture can therefore continue to use red diesel for the duration of those operations. But if and when it relocates to a construction project, the tank will have to be flushed out and refilled with fully-taxed white diesel.
The full guidance can be found at www.gov.uk/government/publications/changes-to-rebated-fuels-entitlement-from-1-april-2022/check-when-rebated-fuel-can-be-used