News
Red Diesel - using vehicles off road As mentioned, in a previous feed there have been revisions to the excepted vehicle categories in Schedule 1 of the Hydrocarbon Oil Duties Act 1979. The most recent changes were effective from 1st April 2008. A vehicle that is not used on the public road and has no licence under the Vehicle Excise and Registration Act 1994 is an excepted vehicle (i.e. can be run on red). But if such a vehicle has become untaxed since 31 January 1998 it requires a Statutory Off-Road Notification (SORN). Such vehicles will be eligible to use red diesel if a SORN declaration has been made. Unlicensed vehicles that do not require a SORN will continue to be able to use red diesel without a SORN declaration if kept off-road. This is not something new but does, in our experience, create confusion amongst operators using vehicles off road. Worryingly, HMRC appear to be adopting a zero tolerance approach! The message is if you are using a vehicle off road and want to be eligible for red diesel (a) make sure it is unlicensed and (b) make sure you submit a SORN for the vehicle. Do not take the vehicle on a public road unless (a) you license it first and (b) its use falls within one of the available exemptions covering on road use. Such exemptions are now rather more limited than they used to be so we suggest you tread carefully and seek advice. Dyne Solicitors Limited - 01829 773100, info@dynesolicitors.co.uk |
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