Limitations on the use of red diesel for the construction and
engineering sectors UK.
Glasgow and COP26 resulted in various commitments from global
economies to work towards targets in the reduction of greenhouse
gas emissions. The UK is to target the reduction of greenhouse
emissions to net zero by 2050.
However, even prior to COP26 there were already legislative
changes afoot to have cleaner air. The Finance Bill 2021, and the
associated secondary legislation, as part of the government's
plans to reduce carbon emissions, has the effect of restricting the
usage of red diesel after April 2022.1
What is red diesel? In short it is regular (white) diesel that
is dyed to make it identifiable. Why? It is taxed at a much lower
rate, making it almost 50 pence a litre cheaper than white diesel.
That discount will end for those industry sectors that have used
it, but are now restricted from its usage post April 2022.
