Diesel invites extra tax: for part of tank
Yachtsmen filling their diesel tanks from 1 November are to be charged an extra 12.5 per cent VAT for 60 per cent of the fuel purchased. The remaining 40 per cent will incur the current charge of 5 per cent VAT.
The split comes after months of intense lobbying by the British Marine Federation (BMF) and RYA over an acceptable apportionment that satisfies all parties, including HM Revenue & Customs (HMRC) and fuel vendors.
The announcement was made at a briefing at the Southampton Boat Show, yachtsmen will still be required to sign a declaration saying this percentage is accurate, however, but will not need to keep exhaustive records of their fuel use.