Falmouth Oil Services (FOS) has confirmed it will no longer be supplying diesel fuel to leisure craft in wake of government legislation introduced on November1 2008, regarding a new charging scheme for duty paid on marine red diesel.

FOS Terminal manager Paul Denmead said: “The decision to cease supplying diesel to leisure craft comes into force this week. We will of course be open as usual to supply diesel to dive boats, ferries and fishermen. After the HM Revenue and Customs introduced the new legislation it really is not worth our while supplying leisure users – it is just too much hassle for us. FOS will be concentrating more on its commercial operations with merchant vessels.”

Under the new government scheme the boating fraternity will have to self declare if they are using their boat for commercial or recreational purposes with recreational craft paying the full duty rate on fuel.

Red Diesel used for onboard heating will be sold at a lower rate of duty but again boat owners will have to declare to the supplier what proportion of their fuel is being used for heating and propulsion. Anyone making a false declaration regarding the status of their craft risk enforcement action by the HMRC.

Dave Fitzgerald of Her Majesty’s Revenue and Customs confirmed that the core policy had been fixed but that they would be working closely with Royal Yachting Association (RYA) and the British Marine Federation and other stakeholders in relation to developing the detail of the declaration process and apportionment of fuel for domestic use. Following that consultation process, HMRC will produce comprehensive guidance.

Neil Northmore, the RYA s Government Affairs Advisor, said: “Since the decision was made to charge a higher rate of duty on red diesel, which required a new regime, we have been working hard with HMRC to find a sensible solution for all.”

It is felt that some marina operators and suppliers will cease their re-fuelling business due to the complex rules and regulations.

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