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The government plans to take action on climate change and intends to improve the UK's air quality. HMRC recently published a consultation on reforms to the tax treatment of red diesel and other rebated fuels. In particular, to consider whether certain sectors should continue to be allowed to use red diesel.

The sectors retaining the entitlement to use red diesel are agriculture, rail and non-commercial heating (including domestic heating). Many UK businesses who use red diesel will have to use fuel at the standard tax rate from April 2022, unless they have exceptional reasons to justify use after this date.

You can find the consultation and the response form in the link below.

https://www.gov.uk/government/consultations/consultation-on-reforms-to-the-tax-treatment-of-red-diesel-and-other-rebated-fuels

The closing date to send your response is October 1st 2020. Don't miss the opportunity to have your say!