HMRC is to proceed with a legislative amendment to allow agricultural vehicles to use rebated fuel, known as red diesel, when gritting roads following calls for farmers to use their tractors to grit roads after a run of severe winters.

In July 2012, HMRC launched a consultation to establish whether an amendment to Schedule 1 to the Hydrocarbon Oil Duties Act 1979 (HODA) to allow agricultural vehicles to use red diesel when gritting roads was desirable. The response was overwhelmingly positive, with the change expected to benefit rural communities, whilst the potential effect on gritting businesses and supplies of salt and grit was thought to be minimal.

A draft statutory instrument (SI) to extend the eligible activities for agricultural tractors and light agricultural vehicles to include gritting was published in July 2013 for comment. Respondents suggested that the amendments should include agricultural material handlers as they are also vehicles suitable for use in gritting. HMRC agrees with this suggestion and have amended the draft SI accordingly.

HMRC will lay the draft SI in September, with the changes coming into effect in time for this winter.

More details are available from HMRC at HERE