Drilling rigs can use red diesel
Drilling Rigs Can Use Red Diesel
CTM Law successfully challenged HMRC’s interpretation regarding the use of red diesel in vehicles transporting drilling rigs.
The Issue
HMRC had changed its interpretation of the rules governing red diesel usage, taking the position that vehicles transporting drilling rigs were not entitled to use rebated fuel. This change in stance put operators at risk of having their valuable equipment seized and facing significant financial penalties.
The Challenge
CTM Law took the matter to Lincoln Magistrates Court, challenging the seizure of valuable equipment that had been confiscated on the basis of HMRC’s revised interpretation. The court found in favour of our client.
HMRC’s Appeal
Not content with the Magistrates Court outcome, HMRC appealed the decision to the Crown Court. CTM Law successfully defended the original ruling, and the appeal was dismissed.
The Result
This was an important victory, not just for our client but for the wider industry. It confirmed that drilling rigs can lawfully use red diesel, and that HMRC’s attempt to change the established interpretation was not supported by the law.
If you are facing similar issues with HMRC regarding red diesel usage or the seizure of vehicles and equipment, contact us for specialist advice.
Frequently asked questions
Can drilling rigs use red diesel?
In the case CTM Law handled, yes. HMRC had changed its interpretation to say vehicles transporting drilling rigs were not entitled to use rebated fuel. Lincoln Magistrates Court found in the client's favour, and HMRC's appeal to the Crown Court was dismissed, confirming that drilling rigs can lawfully use red diesel.
Can you challenge an HMRC seizure of equipment over red diesel use?
Yes. CTM Law challenged the seizure of valuable equipment confiscated on the basis of HMRC's revised red diesel interpretation at Lincoln Magistrates Court and won. HMRC appealed to the Crown Court, where CTM Law successfully defended the ruling and the appeal was dismissed, as HMRC's position was not supported by the law.
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