Duties
Stamp duty land tax
As previously announced stamp duty land tax thresholds revert as follows:
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Rate
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Residential in disadvantaged areas
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Residential outside disadvantaged areas
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Non-residential
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Total value of consideration
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Zero
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£0 - £150,000
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£0 - £125,000
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£0 - £150,000
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1%
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Over £150,000 - £250,000
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Over £125,000 - £250,000
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Over £150,000
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3%
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Over £250,000
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Over £250,000
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Over £250,000
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4%
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Over £500,000
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Over £500,000
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Over £500,000
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Stamp duty land tax avoidance schemes
A raft of announcements was made extending the Disclosure of Tax Avoidance Schemes.
Certain disclosure to HM Revenue and Customs with regard to property schemes is required and these announcements relate to the users of all SDLT avoidance schemes, for both commercial and residential property. These announcements, which largely apply to residential property with a value of at least £1 million, are targeted at promoters of tax avoidance schemes including accountancy firms! These changes are due to take effect no later than 1 April 2010.
Biofuels duty
The current 20 pence per litre (ppl) duty differential for biodiesel and bioethanol will cease from 1 April 2010 and duty will in future be charged at the same rate as main road fuels. As previously announced main road fuels will increase on 1 April from 2010 to 2013 by 1ppl above indexation in each year.
A relief scheme is to be introduced so that producers can continue to benefit from a 20 ppl differential in relation to biodiesel produced only from waste cooking oil. The scheme which will last for two years will allow producers to offset an allowance of 20 ppl against the duty that is payable.
Climate change levy
The reduced climate change levy is to be amended from 20 to 35 per cent on and after 1 April 2011.
Currently climate change agreements provide facilities in energy intensive sectors with an entitlement to pay a 20 per cent reduced rate of climate change levy. Facilities claim the reduced rate by certifying to their energy suppliers the extent of their entitlement to the levy relief. The requirement to give new certificates takes effect on and after 1 April 2011 and are required to be given by the completion of the claimant’s first annual review after 1 April 2011.
Bingo duty
Bingo duty will be reduced to 20% at Budget 2010.
Landline duty
Landline duty will be introduced at a rate of 50p per month for each line from 1 October 2010.
Stamp duty
As previously announced HM Revenue and Customs will not seek to apply the 1.5 per cent stamp duty or stamp duty reserve tax (SDRT) when new shares are first issued to an EU clearance service or depository receipt system.
On 1 October 2009, HM Revenue and Customs announced that it proposed to ensure that, following the decision of the European Court of Justice in HSBC Holdings Plc and Vidacos Nominees Limited v Commissioners for HM Revenue and Customs, movements of securities between clearances and depositary receipt systems bear their fair share of tax by changing the law with effect from that date.
Legislation will be introduced in the Finance Bill 2010 to remove the exemptions for transfers where companies and depositary receipt issuers arrange a scheme under which new shares are issued to an EU clearance service or depositary receipt system without the payment of a 1.5 per cent stamp duty or SDRT and the shares are subsequently transferred to a depositary receipt system or clearance service outside the EU.
Vehicle excise duty for motorcycles
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VED band
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Change from 2009-10 to 2010-11
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2010-11 rate
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Up to 150cc
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-
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£15
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151 - 400cc
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-
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£33
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401 - 600cc
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+£2
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£50
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Over 600cc
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+£4
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£70
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Insurance premium tax
With effect for payments on or after 9 December 2009 measures are introduced with regard to an avoidance scheme involving an ‘administration fee’ charged under a separate contract. The legislation brings certain fees charged under a separate contract in connection with personal lines insurance into the scope of IPT.
The measure applies only to charges made in connection with insurance contracts with private individuals. Charges made for services provided in connection with insurance contracts with businesses and other organisations are not covered.
Air passenger duty
The basis for this duty changed from 1 November 2009 to be a duty based on the mileage travelled between London and the capital city of the destination country. The duty changed on this date and also further increases with effect from 1 November 2010. These changes will affect all air passengers, airlines and travel agents.
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Band and distance of capital city of destination country in miles from London
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In the lowest class of travel (reduced rate)
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In other than the lowest class of travel (standard rate)
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Current rate
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On or after 1 Nov 2010
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Current rate
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On or after 1 Nov 2010
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Band A (0-2000)
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£11
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£12
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£22
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£24
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Band B (2001-4000)
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£45
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£60
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£90
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£120
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Band C (4001-6000)
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£50
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£75
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£100
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£150
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Band D over 6000
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£55
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£85
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£110
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£170
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