Saturday 6 September 08 - 06:13
 

News

Brown in new luxury tax scare

As we closed for press on this April issue of BB, we learned that the chancellor's office had leaked details for a deal hammered out by Gordon Brown with Brussels to equalise the effects of losing the derogation on red diesel later this year.

Taking his lead from the recent Chinese luxury tax explosion - see story on page 6 - Brown has realised his ambition of introducing a new tax targeting sailboat owners.

"With the derogation on red diesel going, powerboaters will have to pay a lot more for their fuel, " explained Simon de Beaufort, a Downing Street source. "The chancellor felt it was time those enjoying the power of the wind to propel their craft should be paying a similar level of taxation."

As a result, owners of all craft - power and sail - will be required to register with details of engine size and sail area.

"It's a complex equation involving wind strength and sail area, " said de Beaufort, "but we are committed to making sailboat owners pay the same level of propellant taxation that powerboaters will face once the UK loses its outdated derogation on red diesel expected this autumn."

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