HMRC guide on supplying fuel to private pleasure craft, including superyachts

23 June 2026

Following last month’s article about the temporary reduction in the red diesel rebated fuel duty rate from 10.18 pence per litre (ppl) to 6.48ppl till the end of this year, a new HMRC guide on supplying fuel to private pleasure craft is available on our Public Affairs webpage, see under Guidance Notes ‘Red Diesel & legal obligations for Registered Dealers in Controlled Oil’.

This latest guide is a result of constructive discussions over several months between British Marine and British Marine Superyacht UK member, Bachmann Group, with HMRC to address gaps in previous notices and provide greater certainty for fuel suppliers, yacht managers, captains and owners of private please craft (PPC) operating in UK waters. The guide specifically helps RDCOs to identify PPCs (which in almost all cases includes superyachts) and apply the correct fuel duty treatment when supplying red diesel to coastal and inland marine vessels.

The key steps to take when supplying fuel are summarised below:

Determine the vessel’s status by its actual or planned use for the fuel you supply.
A vessel is a PPC if it is used for private or recreational purposes by its owner, charterer/hirer or anyone else allowed to use or operate it.
For PPC supplies, get a declaration of how much fuel will be used for propulsion and pay the additional duty due, to bring that fuel up to the white diesel rate, currently 52.95ppl.

Last month the red diesel rate reduced from 10.18 pence per litre (ppl) to 6.48ppl, until 31 December 2026 - so the difference in duty you must pay to HMRC on fuel for PPC propulsion increases to 46.47ppl.

If claimed commercial use is unclear, always ask for a written statement and copies of documented evidence.

Crucially this guide makes clear that a superyacht is always a PPC if either the owner or the charterer determines how the vessel is used and enjoys it for their own leisure, or for their guests’ leisure. This includes when a superyacht is repositioning, on standby, or being used in support of the owners’ pleasure in between charters.

Commenting on the production and publication of this latest guide:

We are grateful to British Marine as our trusted and invaluable trade association, for helping to instigate discussions with HMRC over the last year and to HMRC for addressing the previous grey areas. This guide provides much needed certainty for our industry, including those operating within the superyacht sector.

Ben Mahy Director of Technical Services at Bachmann

British Marine also welcome the fact that HMRC is now in the process of updating the associated notices – Notice 192, Notice 554 and Notice 263 - to ensure they fully align with this latest guide. We will continue to keep our guidance, including links to all relevant notices updated on our Public Affairs webpage.

If you require further information please contact our External Relations Manager, Joanna Richardson, on email jrichardson@britishmarine.co.uk

📸credit MDL Marinas