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Sep 15, 2023

Using rebated fuels in vehicles and machines (Excise Notice 75)

Find out when you can use rebated diesel, biodiesel or kerosene in vehicles and

Find out when you can use rebated diesel, biodiesel or kerosene in vehicles and other machinery.

It tells you when you can use rebated diesel, biodiesel or kerosene in vehicles and other machinery.

Diesel (also known as gas oil or DERV) is normally liable to the full rate of excise duty.

There are circumstances where a particular vehicle or machine may be able to use fuel taxed at a reduced (rebated) rate of excise duty. This is because of the type of vehicle or machine, and the purpose it's being used for.

Where a rebate of excise duty has been allowed, fuel must be marked to show that the lower rate of duty has been charged and paid.

A mix of chemicals is used to mark the diesel, and this includes a visible red dye. For this reason, diesel taxed at the rebated rate of excise duty is sometimes known as:

The rebated rate of excise duty is shown in the rates and allowances list as ‘Marked gas oil’.

Biodiesel and hydrotreated vegetable oil (HVO) are diesel quality fuels derived from biomass. They’re treated the same as diesel under the Hydrocarbon Oil Duties Act 1979, and are liable to the same excise duty rates.

They can also be supplied at a reduced duty rate for the same uses as diesel, if all the requirements that apply to diesel are applied. They must be marked and can only be supplied by a registered dealer in controlled oils (RDCO).

For this notice, references to using red diesel include using rebated:

Kerosene is a heavy oil that may also benefit from a fully rebated rate. Rebated kerosene must also be marked and can be used only for generating heat for use in or on premises.

Anyone who:

UK law:

Nothing in this notice modifies the law.

Certain types of vehicle and machinery, when being used for a particular purpose, can use rebated fuel. These are known as ‘excepted machines’.

Any vehicle or machine that is not an excepted machine cannot use rebated fuel.

The types of vehicles that can use red diesel are:

But only when they’re being used for qualifying purposes, for example:

Not all the qualifying purposes apply to all the vehicle types.

You should check that your vehicle, when being used for a particular purpose, is entitled to use red diesel.

Specific details on the acceptable uses of each type of vehicle are given in section 3.

All types of boats and marine transport, except for private pleasure craft, are expected machines and can use red diesel for any use.

Private pleasure craft are not excepted machines. They can use red diesel in Great Britain (England, Scotland and Wales), only if the user makes a declaration of how much fuel they’ll use for propulsion, and pays full excise duty on that amount.

Private pleasure craft in Northern Ireland cannot use red diesel for propulsion.

For more details read Fuel used in private pleasure craft and for private pleasure flying (Excise Notice 554).

Machines and appliances being used primarily to generate heat and electricity for premises that are not used for commercial purposes can use red diesel.

A kerosene heating system is an excepted machine when it is being used to generate heat for any premises.

These uses are explained in section 7 of this guide.

Other machinery, engines, or appliances can use red diesel when being used:

There are 2 elements to be considered when deciding if a vehicle is an excepted machine that can use red diesel. They are:

Many of the vehicles described in these paragraphs will be classed as ‘special’ or ‘agricultural’ vehicles by the DVLA, but this does not confirm eligibility to use red diesel.

To use red diesel, a vehicle must meet the specifications in, and be used only as allowed by the excepted machine categories listed in Schedule 1A to HODA.

To be an ‘agricultural vehicle’ and use red diesel, the vehicle must meet one of the following 4 definitions, and be used for a purpose defined in paragraph 3.3.

It must be one of the following:

Vehicles designed mainly for carrying goods, produce, and implements are trucks. They’re not agricultural vehicles even if the goods, produce, or implements being carried are for, or a result of, an agricultural activity.

In principle a Unimog would be classed by DVLA and HMRC as a truck and the previous paragraph will apply to it.

We would consider a Unimog to be a tractor for the purposes of HODA only if it:

A Unimog can also be an agricultural vehicle if it has permanently attached or built-in machinery used for handling or processing agricultural, horticultural, aquatic farming, or forestry produce or materials.

An agricultural vehicle defined in paragraph 3.2, can use red diesel when being used for:

Agricultural vehicles can also use red diesel when being used for any use on:

Read section 12 for what we mean by activities falling within:

A special vehicle is a vehicle of any weight that is designed, constructed and used as mentioned in Schedule 1 part IV to the Vehicle Excise and Registration Act 1994, on the legislation website.

This covers such vehicles as:

Where a special vehicle is used for a purpose set out in paragraph 3.5, it can use red diesel for that purpose and to travel to and from the place where it's used.

Other than weight, it must meet the specifications of, and be used in accordance with the restrictions described in the relevant part of the Vehicle Excise and Registration Act 1994.

For example, a digging machine, mobile crane or mobile pumping vehicle must not carry any load when used on public roads, except when it is necessary for its propulsion or operating the vehicle's equipment.

A special vehicle defined in paragraph 3.4, can use red diesel only when it is used:

A vehicle is ‘unlicensed’ if:

An unlicensed vehicle can use red diesel if it is being used:

Where a vehicle is entitled to use red diesel because it's being used on a golf course, driving range or community amateur sports club. It can also use rebated fuel when crossing a road that runs between 2 parts of the course or community amateur sports club land, by the shortest practicable route.

This does not apply to unlicensed or SORN vehicles if the road is a public road.

Any vehicle designed to be operated on a railway within the meaning of section 67(1) of the Transport and Works Act 1992 on the legislation website, can use red diesel.

This does not include:

Any other machine or appliance (that is not a vehicle or a vessel) can use red diesel when it's being used:

A machine or appliance (that is not a vehicle or a vessel) can also use red diesel when it's being used for any purpose on:

A kerosene heating system can use rebated fuel for generating heat for any premises.

A machine or appliance should only contain rebated fuel if it's being used, or was last used, for one of these purposes.

A machine or appliance is liable to seizure and financial sanction, if it is found containing rebated fuel that should not be in it.

All types of boats and ships can use red diesel at any time, except for private pleasure craft.

A machine or appliance that is permanently on a boat or ship can also use red diesel. This does not include any machine or appliance on a private pleasure craft that uses the same fuel supply as the engine that propels the craft.

The definition of a private pleasure craft is given in section 11 of Fuel used in private pleasure craft and for private pleasure flying (Excise Notice 554).

A private pleasure craft is not entitled to a rebate on fuel used for propulsion.

For this situation, users of private pleasure craft in:

For more details read Fuel used in private pleasure craft and for private pleasure flying (Excise Notice 554).

A charity operating lifeboats can use red diesel in their tractors or gear they use to launch or haul in their boats.

A mowing machine is a vehicle or machine designed only for mowing grass.

You can use red diesel in a mowing machine when it's being used on:

This section explains what we mean by some of the terms we use to describe excepted vehicles and machines, and allowed uses in sections 3 to 6.

Built in refers to equipment or features designed to be incorporated as an integral part of a vehicle, rather than being separate.

The equipment should perform the main function of the vehicle, such as:

We would expect these features not to be easily or quickly detachable.

Separate equipment, supporting apparatus and optional accessories are not considered built in, if they were not designed to be an integral part of the vehicle, but are simply attached to, or mounted on it for security or ease of transport.

Using fuel in a vehicle, vessel, machine or appliance means using it as fuel for:

Any machine or appliance on or in a vehicle is treated as a separate machine if it is not powered by the engine that propels the vehicle.

We do not permit any ‘dual tank’ fuel system that allows a vehicle or other machine to swap between:

The types of vehicles and machines detailed in sections 3 to 6 can only use rebated fuel when being used for certain purposes (such as agriculture).

This includes the times when the vehicle is not actually in use, for example, a vehicle which has been used for an agricultural purpose today can have rebated fuel in its tank after use.

A vehicle or machine that is not being used should not have rebated fuel in its tank unless it:

If you hire out vehicles, machines or appliances used for both allowed and non-allowed purposes, you will need to either:

You’ll need to manage how you control the type of fuel your customers use. If you allow customers to use rebated fuel for qualifying purposes in your vehicles, machines, or appliances, you must make sure it does not have rebated fuel in it, if it's then used for a non-entitled use.

This means goods, material, or equipment the vehicle must carry because it could not reasonably be operated without it.

This can include fuel, lubricants, and tools necessary to make adjustments, or to do any maintenance while the vehicle is being used.

It also includes any equipment required to comply with health and safety regulations, such as:

Any other goods, materials or equipment not directly needed for the propulsion of the vehicle or operation of the vehicle's equipment can not be carried.

HMRC applies the following definitions of agriculture, horticulture, aquatic farming, and forestry:

Section 12 explains our interpretation of purposes relating to agriculture (including aquatic farming), horticulture and forestry in the ‘Memorandum of Agreement’, agreed by:

Arboriculture mainly focuses on the growing, care and management of trees, shrubs and woody plants. These are usually in gardens, parks or other populated settings, for the enjoyment, protection, and benefit of people.

Machines and appliances (other than vehicles) used for all forms of tree work can use red diesel. This includes, but is not limited to the use of the following by arborists and tree surgeons:

Qualifying vehicle types can use red diesel for arboriculture uses that are accepted as purposes relating to horticulture or forestry (read section 12). Agricultural vehicles can also use red diesel for cutting trees bordering public roads.

The Vehicle Excise and Registration Act 1994 defines a public road as "any road that is maintained at the public expense", for example by the Highways Agency or by a Local Authority. This includes footpaths and bridleways the public has access to that are maintained at the public expense.

An area of land where golf is played, including the facilities used by golfers who play there, such as clubhouses and pro shops. It also includes driving ranges, whether on the site of a golf course, or not. It does not include golf courses under construction.

The definition of a community amateur sports club is at section 658 of the Corporation Taxes Act 2010, on the legislation website.

To be a community amateur sports club it must:

Read the list of community amateur sports clubs (CASC) registered with HMRC.

Using a system, boiler, or other appliance to:

Using a fixed or mobile generator to provide electricity for use in or on the premises.

Where 75% or more of the electricity or heat generated when a machine or appliance is being used is for premises, or parts of premises, not used for commercial purposes.

A house, building or other structure, together with its land and outbuildings. Premises can also include any land, means of transport or mobile premises that are being used for carrying on a business or for private use.

Commercial purposes means trading in goods or services with the intention of making a profit.

This does not include delivery of a service, where it's intended that any profit made will only ever be used to cover the costs of delivering that service.

Premises that are mainly used as someone's home are not used for commercial purposes. This also applies where someone's home is also where they work.

Other premises we consider not being used for commercial purposes include:

The type of activities done on these premises can include those that directly relate to the service you provide, and activities that indirectly relate to providing your service.

For example, a café selling food and drink in a library is not a necessary part of providing the library service. It enhances the overall experience of the facility for the public and encourages them to make use of it, and contributes to its running costs.

You can use rebated fuel to generate electricity and heat for the premises, even if commercial contractors work there, provided they contribute to the running of your service.

For example, services such as school catering and cleaning by commercial contractors do not mean that the premises are used for ‘commercial purposes’.

A heating system that uses a furnace or boiler designed or adapted to use kerosene as fuel.

There may be situations where individuals or business, whose use of vehicles or machinery is essential, cannot get or use full duty-paid (white) diesel, but can get or use red diesel.

In these circumstances, we may allow you to pay the duty on the red diesel and then use it. You will need to apply for a ‘rebated fuel licence’.

Rebated fuel licences enable the continued operation of vehicles or machines used for essential and critical purposes.

Using red diesel will be allowed only in response to exceptional circumstances, such as fuel supply issues.

This might be necessary if:

We will only grant a licence if we are satisfied that:

It's unlikely that we’ll approve your application if:

Use of a vehicle or machine is essential and critical if, without that use, there would be a significant risk to:

You must get approval before you use red diesel in your vehicle or machine due to exceptional circumstances.

To apply for a licence you must send your request by email: [email protected].

You’ll need to include details of:

We’ll check to satisfy ourselves that:

If we decide not to issue a rebated fuel licence, we’ll advise you of our decision in writing.

If we decide you can use red diesel, we’ll send you a licence which you must present when you buy red diesel.

We recommend you carry a copy of the licence with all vehicles or machines covered by it.

The licence will also tell you:

You must use:

The law requires you to keep a daily record of all the red diesel you use in your vehicle or machine under the terms of the licence.

You must keep them at the same place as the vehicle or machine, or at any other premises agreed with our officer, for at least 12 months from the date of the last entry in them.

You must record the identifying marks of the vehicle or machine using red diesel, on the day it is used. This can be the registration number of a vehicle or serial number of a machine, showing:

Your licence confirmation letter will explain how to estimate your fuel use and pay the duty due.

We will repay any duty paid for fuel that was subsequently not used.

A ‘rebated fuel licence’ remains in force until we cancel it.

You must tell us of any changes to the information in your application for the licence, including when the exceptional circumstance that required the licence no longer applies.

We may periodically visit you or write to you to confirm the details on the application remain correct and the reason for needing to use red diesel still applies.

We will also cancel your licence if we are no longer satisfied that you should be approved to use red diesel, for instance, if you:

We will write to tell you the date your licence stops, explain why, and give you an opportunity to respond. We will also tell you how to provide a final return.

The law gives HMRC officers the power to establish if the correct fuel is being used and stored by checking, sampling and testing the fuel in:

For more information on what HMRC officers are allowed to do by law read paragraph 9.4.

As the owner or operator of a vehicle or machine, you must make your fuel available for testing if one of our officers asks you to.

If our officers are unable to take a sample, for instance, because you cannot remove an anti-theft device, or you refuse to allow it, they may seize and remove the vehicle, machine, appliance or vessel until a sample can be obtained. We may also impose a penalty for your failure to comply with this legal requirement.

We may prosecute you if you obstruct, hinder or assault one of our officers.

Your fuel can be tested in your absence. You will be told about the test and the result in writing.

HMRC will take action against those responsible for the presence of marked oils containing any UK or EU chemical marker. These include:

Our officers are allowed by law to:

You must not mix these fuels in any tank, or in the fuel system of any vessel or machine not allowed to use rebated fuel. We may seize the fuel and vehicle or machine if you do.

Some vintage tractors (in production before 1960) and cars (in production before 1956) need to run on a mixture of kerosene and petrol.

Kerosene is a heating fuel and the excise duty on it is fully rebated (reducing the excise duty to nil). For this reason, it is illegal to use kerosene in any vehicle or to mix it with road fuels unless you have a permit from us allowing you to do so.

To apply for a permit email: [email protected] with details of:

If we decide to allow you to add kerosene to your vehicle's fuel, we’ll send you a permit stating the circumstances in which you can use kerosene.

We will seize any vehicle, vessel, machine, or appliance that is using rebated fuel when it is not allowed to.

We may offer to restore your vehicle, vessel or machine to you for a fee and subject to any conditions we consider appropriate.

We will take action against you if you commit offences involving rebated fuel.

You will be liable to a penalty under Section 9(2)(a) of the Finance Act 1994 if you:

We will seize the oil and any containers and equipment used to commit any of these offences.

You may also have to pay:

In more serious cases involving assault, repeated offending or dishonesty, criminal action may be taken. The offender can be fined an unlimited amount or imprisoned for up to 7 years, or both.

The Finance Act 1994 contains the appeal and review procedures for challenging the following excise decisions:

The procedures are different depending on what decision or decisions you’re challenging. We’ll give you a decision letter, and tell you what your rights are, if you want to challenge our decision.

Information about challenging HMRC restoration decisions and linked decisions can be found in what you can do if things are seized by HMRC or Border Force.

More information is available on HMRC's review and appeal procedures.

The arrangements for challenging the seizure of things liable for forfeiture (rather than HMRC's decision about whether to return them to you) are different from the arrangements on HMRC's review and appeal procedures.

If you disagree with our decision to seize your vehicle, machine, vessel or appliance, you can appeal in writing to the seizing officer within one month of the seizure date. We must receive your appeal by this deadline.

We must then bring civil (‘condemnation’) proceedings in the courts to determine the matter, and you can challenge the seizure and forfeiture there.

More information on how to challenge the seizure of goods by HMRC can be found in what you can do if things are seized by HMRC or Border Force.

Find out how to report the misuse of rebated fuel.

Memorandum of Agreement in respect of purposes relating to agriculture (including aquatic farming), horticulture and forestry.

Clear guidelines have been written for the use of machines and vehicles in agriculture (including aquatic farming), horticulture or forestry. The following government departments and agencies, and industry associations, have agreed how legislation shall be interpreted and applied:

The purpose of this Memorandum of Agreement is to provide guidance to those engaged in agriculture, horticulture or forestry, and to agencies enforcing compliance with the legislation.

Any disputes will be considered on an individual basis, with regard to relevant legislation, and any definitive interpretation of the law will be given by the courts.

This Memorandum of Agreement is restricted to the use of agricultural and special vehicles and machines by:

The definitions of vehicles and machines covered by this agreement for hydrocarbon oils duty purposes can be found in Schedule 1A to the Hydrocarbon Oil Duties Act 1979 (HODA), as amended.

Definitions of agricultural vehicles covered by this agreement for vehicle excise duty purposes can be found in Schedule 2 to the Vehicle Excise Registration Act 1994 (VERA), as amended, on the legislation website.

When vehicles covered by this agreement are not used on public roads other than for purposes relating to agriculture, horticulture or forestry they are exempt from Vehicle Excise Duty. Other classes of vehicles that are exempt from Vehicle Excise Duty are not covered by this agreement.

Vehicles, machines and appliances covered by this agreement that are being used for purposes relating to agriculture, horticulture or forestry can use red diesel.

In our view, agriculture is the growing and harvesting of crops, for food, beverages, fodder, fuel, or industrial purposes, or the rearing of animals of any kind for producing food, wool, leather or other substances. Using a vehicle for ‘purposes relating to agriculture’ includes using it to:

In our view, horticulture is the cultivation and management of gardens (including vegetable plots, allotments and market gardens, but also flowerbeds, trees, shrubberies and ornamental lawns in public parks).

By cultivation and management, we mean growing and tending flowers, lawns, shrubs and trees, and harvesting flowers, fruits and vegetables for food (or animal fodder) and for ornament, as well as treating and enriching the soil and controlling weeds and pests.

We do not regard as horticulture the landscaping and maintenance of grassy recreational areas, such as playing fields and golf courses, or the grassed areas of parks that are made available for walks, picnics and general recreation. Using a vehicle for purposes relating to horticulture includes using it to:

In our view, forestry is the upkeep and management of forests including the growing and harvesting of timber and other forestry products.

By ‘forest’ we mean:

Using a vehicle for purposes relating to forestry includes using it to:

The breeding or rearing of creatures and the growing and harvesting of crops or plants are accepted activities whether they take place on land or in water. Therefore, activities accepted as being purposes relating to agriculture and horticulture include equivalent water-based activities involved in pisciculture and aquaculture. This includes the breeding and rearing of fish and other aquatic creatures and the growing of aquatic plants in artificial conditions such as in tanks, ponds, or reservoirs, for food.

Activities we accept as falling within the definition of agriculture, horticulture or forestry include:

Activities not accepted as falling within the definition of agriculture, horticulture or forestry include:

Subject to restrictions in the definition of the particular type of vehicle in HODA and Vehicle Excise Registration Act 1994 (VERA), vehicles exempt from vehicle excise duty or entitled to use red diesel when used for purposes relating to agriculture, horticulture or forestry are accepted as being used for those purposes when they’re being used in the following circumstances:

This includes:

The moving of vehicles and machines by dealers, garage operators and others not engaged in agricultural, horticultural or forestry operations in circumstances other than those listed in the previous 2 paragraphs, is not covered by this agreement.

This includes:

The transportation of produce or livestock must be incidental to an agricultural, horticultural or forestry operation. The responsibility is on the person transporting the load to demonstrate that this is the case.

Transportation of produce or livestock which needs a goods vehicle operator's licence may not be accepted as being incidental.

Transportation of produce or livestock by anyone not involved in the agricultural, horticultural or forestry operation, including by a contractor employed solely for that purpose by a buyer or any other person, haulage an is not included within this agreement.

Collecting inputs and equipment used as part of an agricultural, horticultural or forestry operation, and transported within or between different areas of land. The land must be occupied by the same person as the inputs and equipment used.

This includes:

This does not include:

This includes:

If you are contracted or engaged to carry out agricultural work at a farm or other land used for agriculture, horticulture or forestry, you are using your tractor for purposes relating to agriculture, horticulture and forestry when:

You can transport produce to where it will be sold or put to its intended use if you’ve been involved in the growing or harvesting of the crops.

But, if your involvement is limited only to transporting the crops, we consider the use of the vehicle to be for haulage, not for purposes relating to agriculture.

This would apply to someone contracted, for example, solely to transport crops from an agricultural producer to an anaerobic digestion plant. Such journeys are not considered a purpose relating to agriculture.

You can transport livestock to where it will be sold or slaughtered if you’ve been involved in rearing the livestock.

But, if your involvement is limited only to transporting the livestock, we consider the use of the vehicle to be for haulage, not for purposes relating to agriculture.

You can deliver waste material resulting from an agricultural activity on your farm to where it will be disposed of, sold or otherwise processed.

You can also move waste material within and between different parts of land you occupy.

If you are moving farm slurry you can employ an agricultural contractor using specialist equipment designed for the purpose to move it for you.

You can also collect waste material for agricultural use on your own farm, or the farm on which you work, or are contracted to carry out agricultural work, for example, spreading fertiliser on fields.

Except in the example of farm slurry being moved by a contractor using specialist equipment, you are not engaged in purposes relating to agriculture if you are only transporting the waste material and you are not engaged in an agricultural activity that produced it or in which it will be used.

Clearing felled timber is part of forestry harvesting. This must be in a forest, or a commercial forestry enterprise. Cutting down trees anywhere else is not forestry work, even if you sell the timber.

Chipping, shredding or fine cutting of woody material such as logs and branches you’ve harvested, is accepted as being part of your forestry operation.

Further processing of harvested timber by anyone not involved in the forestry operation is not a purpose relating to forestry.

Land restoration, and ecological and conservation projects are accepted as agricultural, horticultural and forestry purposes. This is providing the work is intended to help reduce the impacts of agricultural land use, such as overgrazing, horticulture and forestry on ecosystems and habitats. This includes maintenance of areas of agricultural land under environmental management schemes.

Ditch clearing and drainage, including work carried out by, or on behalf of a risk management authority (given in section 6 of the Flood and Water Management Act 2010), is accepted as a purpose relating to agriculture, horticulture or forestry. This is only if the work you do is intended to benefit land used for agricultural purposes (including horticulture and forestry). This means the purpose of the work must, at least in part, be to avoid agricultural land becoming unfit to grow crops or rear livestock on.

Any drainage work or flood and coastal erosion management activities with no agricultural benefit to the land, are not agricultural purposes, even if the work takes place on agricultural land.

Laying and maintaining utilities, such as telephone or electricity cables across agricultural land, is an agricultural purpose if the utilities are installed specifically for the agricultural benefit of that land. If it's not, the work and the filling of holes or trenches to repair the land afterwards is not an allowed activity. However, where it is necessary to bring in a specialist contractor to apply agricultural practices and technologies to make sure the land is properly restored for growing crops or rearing livestock, the contractor's work is a purpose relating to agriculture.

If your business involves the cultivation and maintenance of a garden or gardens, this within the definition of horticulture.

If you work somewhere that is not a garden, such as playing fields, a livery yard, stables, at the side of the road, on someone's private land, then this is not horticulture and, the vehicle or machine you use is not an ‘excepted’ machine’.

(Read the ‘meaning of horticulture’ in the ‘Memorandum of Agreement’.)

An agricultural show is an outdoor public event. It demonstrates the skills and exhibits the equipment, and animals associated with agriculture and animal husbandry.

They are usually held on dedicated showgrounds and hosted in collaboration with several partners to:

By attending agricultural shows, farmers are likely to receive beneficial farming advice from exchanging ideas.

They give farmers the opportunity to:

The shows benefit agricultural purposes by providing information and education. The running or participating in agricultural shows, or taking part in charitable activities, such as tractor runs and ploughing matches, promote the farming industry. These are purposes relating to agriculture.

Similarly, running and participating in events which provide information and education that benefits horticulture or forestry are considered as purposes relating to horticulture or forestry.

Events hosted by a single company to convince farmers that its specific products are the best, or events aimed only at selling agricultural machinery, materials, livestock or produce, such as ‘farmers’ markets’, are not agricultural shows.

However, farmers can use rebated fuel in a qualifying vehicle to transport their produce or livestock to where it will be sold.

Providing training or tuition in the safe and competent operation of a vehicle or machine that you use for agricultural, horticultural or forestry work is accepted as a purpose relating to agriculture, horticulture or forestry. This does not include where vehicles or machines are used only for training purposes, such as at tractor training centres or driving experience days.

Maintenance of grassed areas such as sports fields and recreational areas, is not regarded as horticulture.

Cutting down trees or vegetation on wasteland is not agriculture, horticulture, or forestry work.

Keeping animals for sport or recreation is not agriculture. This includes fish farmed or kept only for recreational purposes.

Building or maintaining flood defences is not agriculture.

If you’re not directly involved in as agricultural activity, you’re not regarded as using vehicles or machinery for agriculture, horticulture and forestry purposes. This includes if you’re:

Read the section about moving vehicles and other machinery.

In all other circumstances, dealers and garage operators are not entitled users and must use white diesel for their own uses.

If you’re dealing in second-hand vehicles and machines previously used for accepted activities, we will allow the machines to contain marked diesel provided you can evidence that this is only for allowed use by the previous owner or user.

Red diesel can be used if you’re a dealer and you loan a vehicle or machine for the purposes of a demonstration or trial that includes using the machine for accepted purposes, for example to a farmer for agricultural use. In those circumstances, the vehicle or machine will be treated as used and the previous paragraph will apply to it.

If you’re a garage operator, you can service, maintain, repair, or inspect vehicles and machines that are fuelled with red diesel if the vehicle or machine is otherwise used for accepted purposes. You can also collect and return a vehicle that you work on.

Read the HMRC Charter to find out what you can expect from us and what we expect from you.

If you have any feedback about this notice write to:

HM Revenue and Customs Excise Oils Policy 4th Floor EastTrinity Bridge House2 Dearmans PlaceSalford M3 5BS

This address is not for general enquiries.

You’ll need to include the full title of this notice. Do not include any personal or financial information like your VAT number.

If you need general help with this notice or have another question contact the HMRC excise enquiries helpline.

If you’re unhappy with HMRC's service, contact the person or office you’ve been dealing with and they’ll try to put things right.

If you’re still unhappy, find out how to complain to HMRC.

Find out how HMRC uses the information we hold about you.

Ulster Farmers Union has been added as a signatory to the Memorandum of Agreement.

First published.