HMRC confirm red diesel usage at NI tractor runs

HMRC confirm red diesel usage at NI tractor runs

The Ulster Farmers’ Union (UFU) says the changes made to using rebated fuels guidance  by HMRC which will continue to allow tractors participating in tractor runs to use red diesel from 1 April 2022, will be well received by the farming community.

The guidance on ‘Using rebated fuels in vehicles and machines’ (Excise Notice 75) has now been amended and will allow tractor runs, ploughing matches and agriculture shows to continue as activities accepted as ‘purposes relating to agriculture, horticulture and forestry’. 

The updated guidance states that activities falling within the definition of agriculture will include ‘running or participating in events which provide information and education that benefit agriculture, horticulture or forestry, including taking part in charitable activities that promote these industries’.

UFU deputy president David Brown said, “HMRC has made the right decision by including tractor runs, in addition to shows and ploughing matches as activities that provide information, education and raise money for charity. This will be well received by our members and rural communities that host tractor runs and many other agri events to raise vital funds for charities across Northern Ireland. 

“Earlier in the month, HMRC backtracked on changes to red diesel usage rules, to include ploughing matches and agricultural shows but left out tractor runs. We outlined our disappointment to HMRC that tractor runs organised as charity events or for educational purposes, were not included in this amendment and it’s encouraging that they reviewed this position following pressures from the industry and politicians. It’s good that common sense has prevailed and our rural communities can continue to raise essential funds through tractor runs and other agri events.”