Arboricultural works permitted to use rebated fuel

On 15th March 2023, HM Revenue and Customs (HMRC) announced revised rules will permit businesses or individuals in the arboriculture industry to use rebated fuel in machines and appliances (but not vehicles) for all tree work. 

Use of rebated fuel such as red diesel was previously taken away from key arboricultural tasks on 1st April 2022, along with construction and landscape maintenance. 

The announcement is great news for the arboricultural industry, with credit to the Arboricultural Association for lobbying the government.

This change for the arboricultural industry has been granted approval on the basis HMRC acknowledge tree surgeons could not reasonably be expected to change between white diesel for non-permitted tree works and red diesel for permitted tree works. 

A quote from the amendment document states:

The government recognises that this [change to the rules] has created unintended difficulties for arboriculture businesses whose work requires them to use their machines and appliances for a combination of allowed and no longer allowed purposes.

In their original policy paper, dated November 2021, HMRC justified the removal of rebated fuel from construction, landscape and some arboricultural tasks as a means to helping meet climate change and air quality targets, as well as: reflecting the harmful impact of the emissions they produce.

No reference has been made to the environment, climate or even air quality targets in the amendment document issued by HMRC earlier this month, which has surprised the Association.

Unfortunately, the landscape industry has not benefitted from the same reversal of ruling, meaning most landscape maintenance tasks remain unable to use rebated fuel.  This is despite the Association’s Chief Executive, Wayne Grills, previously meeting with the Government to express his disappointment by the way the landscape industry would be affected by the rules.

The Association maintain the landscape industry face the same challenges as before and would benefit from greater access to rebated fuel.  The Association are disappointed that, given their previous participation in consultations regarding red diesel, HMRC did not contact the Association to discuss the potential for a similar reversal of rules for the landscape industry.

Further reading:

HMRC Policy Paper (November 2021): Reform of red diesel and other rebated fuels entitlement
HMRC Policy Paper (March 2023): Changes in Changes in entitlement to use rebated fuels