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National Association of Agricultural Contractors

Representing Agricultural and Amenity Contractors

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10th January 2008

NEW Guidance on Red Diesel

Following agreement with Her Majesty’s Revenue and Customs and the Driver Vehicle Licensing Agency, the NAAC, NFU and Confederation of Forest Industries have released a new Memorandum of Agreement giving guidance on the use of red diesel in agricultural, horticultural and forestry vehicles on the road.

The aim is to clarify how rebated fuel can be used by agricultural contractors and farmers to ensure both the industry and enforcement officers have a clear and common understanding of how the law will be interpreted and applied.

Under current legislation, the exemption defines a tractor as a vehicle used on public roads ‘solely’ for purposes relating to agriculture, horticulture, forestry or cutting verges bordering public roads; or cutting hedges or trees bordering public roads or bordering verges which border public roads.

The new Memorandum more clearly defines the meaning of ‘solely’ as well as clarifying those activities which are acceptable uses of red diesel.

“We are delighted it has been made clear that contractors are allowed to use red diesel to move between agricultural operations but we must not abuse our privilege and I would urge all operators to take note of the Memorandum. It can only be a positive step to have clear guidance so that if you are stopped you can actually feel confident that you are OK.”
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