Buying diesel for private pleasure craft
Key information to help you choose the correct type of diesel, understand how duty is applied, and what details you may need to provide when purchasing fuel.
Use this guidance to understand the current rules for buying diesel for private pleasure craft in Great Britain and Northern Ireland. It explains which type of fuel you can use, how duty is applied, and what declarations you need to make when you buy diesel, so you can meet your legal responsibilities.
Private pleasure craft definition
A private pleasure craft is defined in the Hydrocarbon Oil Duties Act 1979 as “any vessel used otherwise than for commercial purposes by: (a) the owner of the vessel or (b) any other person entitled to use it.”
This definition is different from that of a pleasure vessel used in regulations made under the Merchant Shipping Act 1995.
Further useful guidance is available in Section 11 of Excise Notice 554.
Buying rebated (red) diesel for private pleasure craft in Great Britain
Diesel used to propel private pleasure craft is no longer eligible for a reduced rate of duty in Great Britain (England, Scotland, Wales).
Rebated (red) diesel - including rebated sulphur-free diesel and rebated bioblend - can still be bought at the waterside, but you must pay the full rate of duty on any fuel intended for propulsion.
Diesel for domestic purposes (heating, electricity generation) may still be purchased at the reduced rate.
When buying red diesel for a private pleasure craft, you must declare to the supplier the proportion you expect to use for:
- propulsion
- domestic purposes
There is no fixed legal split, but industry and HMRC analysis suggests a 60/40 propulsion/domestic split reflects typical usage.
If your usage differs, or your vessel has no domestic use, you must declare the actual intended percentages.
If you buy red diesel outside UK waters, check the rules for that jurisdiction. See our guidance on using red diesel abroad.
Declaring fuel usage
Section 5 of Excise Notice 554 explains how to make a declaration when you purchase red diesel. A declaration is required even if 100% of the fuel will be used for propulsion.
If you regularly use a particular supplier, you may make a single, annual declaration, provided the percentage is accurate. You will need to renew your declaration at least once a year, and make a new declaration if the percentage changes (for example, during winter).
Residential boats
If your boat is your main home and you can provide evidence to HMRC (e.g. a houseboat licence, residential mooring agreement, or a council tax bill), you may buy all fuel at the rebated rate and declare 0% propulsion.
Continuous cruisers cannot declare 0%, even if they live permanently on their boat. They must declare their actual propulsion use.
Rules for buying and using diesel in Northern Ireland
Red diesel is fully prohibited for propulsion of private pleasure craft in Northern Ireland, and it is illegal to put red diesel into the tank that supplies the propulsion engine.
This difference from Great Britain exists because Northern Ireland continues to follow certain EU excise rules under the Northern Ireland Protocol.
If you have separate tanks for propulsion and domestic use, such as heating or electricity generation, you can buy red diesel for use in the domestic tank.
If your boat does not have separate tanks, you can still benefit from a relief scheme that allows private pleasure craft users in Northern Ireland to purchase 40% of fuel at the lower, rebated rate at the point of sale. This reflects the amount of fuel typically used for non-propulsion purposes. You will need to sign a declaration each time you buy rebated diesel under this relief.
A residential boat is not classified as a private pleasure craft and may continue to use red diesel in any tank not supplying the propulsion engine.
Sanctions for illegal fuel use are explained in Section 11 of Excise Notice 75.
Moving between Northern Ireland and Great Britain
If you visit Great Britain in a Northern Ireland-based private pleasure craft, you may buy red diesel under GB rules.
You may carry this fuel back to Northern Ireland but should keep:
- receipts
- engine-hour logs
- passage records
These may be needed to demonstrate that the diesel was purchased legally.
You should keep the same records when visiting Northern Ireland from Great Britain - in case HMRC asks you to show where the fuel was purchased and how it has been used.
Visiting other countries from Northern Ireland
You must refuel in accordance with local law, including purchasing red diesel where permitted. You should keep records of purchases in case you are asked for evidence.
Biodiesel (FAME)
To meet Renewable Transport Fuel Obligation (RTFO) requirements, suppliers may add FAME (Fatty Acid Methyl Ester) to diesel. FAME is made from renewable materials and helps meet environmental targets.
Distribution terminals often store only three grades of fuel – kerosene, road diesel and gasoil for NRMM and stationary engines – so marked road diesel may be supplied for NRMM use, increasing the likelihood that fuel for pleasure craft may contain FAME.
Suppliers can still provide fuel without biodiesel, and it may be possible to request it. Availability depends on how individual suppliers meet their RTFO requirements.
Storage considerations
The addition of FAME can cause problems during storage because of the increased moisture content compared to conventional diesel. These risks can be managed through good fuel management.
Low sulphur requirement
Inland waterways vessels and recreational craft that do not normally operate at sea must be supplied with low sulphur fuel (not exceeding 0.10% by mass), whether or not the fuel contains biodiesel.
