The main announcements for all indirect taxes, including duty rates and VAT, are shown below. These are followed by a list of all announcements which may be of interest to both individuals and businesses. More details can be found in the Overview of Tax Legislation and Rates (OOTLAR) document.
Stamp duty land tax (SDLT): rate in respect of residential property where consideration over £2 million
Legislation will be introduced in Finance Bill 2012 to charge SDLT at 7 per cent of the chargeable consideration where this is more than £2 million. The measure takes effect for transactions where the effective date (normally the date of completion) is on or after 22 March 2012.
Stamp duty land tax: enveloping of high value residential properties
The government will introduce legislation in Finance Bill 2012 to apply a 15 per cent rate of SDLT to residential properties over £2 million purchased by certain non-natural persons. This will take effect from 21 March 2012. In addition, the government will introduce paving legislation for an annual charge.
Alcohol and Tobacco duty rates
Legislation will be introduced in Finance Bill 2012 to increase the duty rates for all alcoholic drinks by 2 per cent above the rate of inflation (based on RPI) with effect from 26 March 2012. This will add 3 pence to the price of a pint of beer, 2 pence to the price of a litre of cider, 11 pence to the price of a bottle of wine, and 41 pence to the price of a bottle of spirits.
Legislation will be introduced in Finance Bill 2012 to increase the duty rates for all tobacco products by 5 per cent above the rate of inflation (based on RPI) from 6pm on 21 March 2012. This will add 37 pence to the price of 20 cigarettes, 12 pence to the price of a pack of five small cigars, 37 pence to the price of a 25g pouch of hand-rolling tobacco, and 20 pence to the price of a 25g pouch of pipe tobacco.
VAT: revalorisation of registration and deregistration thresholds
The government has announced that the VAT registration and deregistration thresholds will be changed so that:
A statutory instrument laid on 21 March 2011 will apply the revised thresholds with effect from 1 April 2012. The simplified reporting requirement (three line accounts) for the income tax Self Assessment return will continue to be aligned with the VAT registration threshold
VAT: revalorisation of fuel scale charges
A statutory instrument laid on 21 March 2012 will revalorise the VAT fuel scale charges with effect from 1 May 2012. The fuel scale charges are published in Annex B of Overview of Tax Legislation and Rates
VAT: Addressing Borderline Anomalies
The government has announced changes to address some anomalous VAT borderlines. The changes either marginally extend VAT at the standard rate to these areas or confirm the current standard rated treatment.
This consultation invites comments on draft legislation changing the VAT treatment of supplies of catering, sports drinks, self storage, hairdressers' chair rental, holiday caravans and alterations to listed buildings.
HMRC would like to hear from businesses involved in the manufacture and retail of affected goods or the provision of affected services; consumers affected by the changes and tax practitioners.