The HMRC's Dave Fitzgerald confirmed the core policy had been fixed but that HMRC would be working closely with the RYA, the BMF and other stakeholders to develop the detail of the declaration process and apportionment of fuel for domestic use.

Following that consultation process, HMRC will produce comprehensive guidance.

'Our main concerns were availability and safety,' said Neil Northmore, the RYA’s government affairs adviser.

'We were aware that there was a danger that some retailers in more remote areas would simply not bother selling to pleasure boats on the premise that it would be more trouble than it was worth to distinguish between private and commercial craft, and then process the paperwork.'

Howard Pridding, executive director of the BMF, told BB: 'We are pleased with how HMRC has managed the consultation process and the position that they have finally adopted. Purchasers will be asked to self-declare whether their boat is used for commercial or private purposes and will be asked to sign a receipt for the fuel by the retailer, who will then forward the receipts to the HMRC.'

It will then be up to HMRC whether they wish to investigate whether the purchase was correct or not, he explained.

The Inland Waterways Association (IWA) welcomed the HMRC announcement, adding that pleasure boaters should anticipate an increase in duty of around 47.25 pence per litre for propulsion fuel.