07.12.2006

Red diesel in UK

The 2005/6 UK fight for red diesel use in cranes and truck mounted lifts, reached its formal conclusion yesterday.

The draft order was laid before parliament that defined and clarified the vehicles that can legally use tax reduced red diesel.

The key changes effectively state that “equipment with built-in lifting apparatus with a revenue weight of over 3,500 kgs” qualify to use red diesel.

Telehandlers or agricultural material handlers as there are referred to, are also now specifically exempted and no longer subjected to a distance limitation.

Essentially this now makes it very clear that truck mounts over 3,500 kgs and all cranes are permitted to use red diesel. It also clarifies the issue concerning van mounted lifts- they must use tax paid white diesel, regardless of whether they are used for “road construction and maintenance or not.

The draft comes into force on April 1 2007 for most changes and April 1 2008 for a couple of clauses.

Both the CPA and IPAF fought successfully to prevent the UK treasury from ending the right for cranes and aerial lifts to use red diesel.