Farmers can use red diesel for show machinery

The taxman has agreed concessions to allow farmers to use rebated red diesel in equipment they provide for agricultural shows and events.

NFU Scotland and NFU England yesterday both welcomed clarified rules in the wake of concerns that a previous heavy-handed approach by HM Revenue and Customs could threaten shows across the country.

The taxman had queried the use of red diesel in the machines often provided voluntarily to show and event organisers, suggesting farmers may instead have had to use fully-taxed derv.

The clarification now means that farmers can legitimately use red diesel in agricultural equipment, such as tractors, forklifts and telehandlers, for travelling to, from and taking part in agricultural, horticultural or forestry events.

This also includes activities linked with education and developing industry skills as well as events that promote all three sectors to the public.

One show organiser yesterday hailed the new rules as a victory for commonsense.

The unions added: “This clarification is a welcome and significant development and will ease some of the confusion and the frustration for members that has surrounded these issues in the past.”

HM Revenue and Customs has, however, pointed out rebated fuel must not be for the commercial gain of the farmer involved and that travelling distances should not exceed 15 miles.