Indirect Taxes including VAT

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.

Main announcements

  1. 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.

    SDLT Rates and Thresholds

  2. 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.

    SDLT higher rate for corporate bodies

  3. 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.

    Tobacco Products Duty Rates

  4. VAT: revalorisation of registration and deregistration thresholds

    The government has announced that the VAT registration and deregistration thresholds will be changed so that:

    • the taxable turnover threshold, which determines whether a person must be registered for VAT, will be increased from £73,000 to £77,000
    • the taxable turnover threshold which determines whether a person may apply for deregistration will be increased from £71,000 to £75,000
    • the registration and deregistration threshold for relevant acquisitions from other EU Member States will also be increased from £73,000 to £77,000

    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

  5. 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

  6. 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.

    VAT Addressing Borderline Anomalies

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All announcements

  • Tobacco duty rates
  • Alcohol duty rates
  • Machine games duty
  • Air passenger duty: devolution of rate to Northern Ireland
  • Use of red diesel in private pleasure craft
  • Vehicle excise duty (VED) rates
  • Carbon price support (CPS) rates
  • Climate change levy rates
  • Climate change levy: removal of the exemption for indirect supplies of combined heat and power electricity
  • Rates of landfill tax from 2013
  • Landfill tax: application to Scottish landfill sites
  • Landfill Communities Fund (LCF)
  • VAT: addressing borderline anomalies
  • VAT: revalorisation of registration and deregistration thresholds
  • VAT: revalorisation of fuel scale charges
  • VAT relief for European Research Infrastructure Consortia (ERICs)
  • Stamp duty land tax (SDLT)
  • Stamp duty land tax leases
  • Repeal of section 22 of the Alcoholic Liquor Duties Act 1979 (ALDA)
  • Double taxation relief on gambling duties
  • Climate change levy: change to the reduced rate on electricity
  • Climate change levy: reform of climate change agreements
  • Climate change levy: metal recycling processes
  • Air passenger duty: business jets
  • Air passenger duty: Northern Ireland rate
  • VAT: low value consignment relief
  • VAT: cost sharing exemption
  • VAT: tackling VAT fraud on imported road vehicles
  • VAT: online registration
  • VAT: grouping extra statutory concession
  • VAT: supplies of goods or services by public bodies
  • Stamp duty land tax: relief for National Health Service bodies
  • Remote gambling
  • Combined bingo
  • Alcohol fraud
  • Herbal smoking products
  • Vehicle excise duty (VED) administration
  • Aggregates levy rate
  • VAT: reduced rate for energy-saving materials in charity buildings
  • VAT: zero rate for adapted motor vehicles and boats for wheelchair users
  • VAT: fuel scale charges
  • VAT refunds for NHS bodies
  • VAT invoicing rules
  • VAT: Universal Credit consequential changes
  • VAT: exemption for education providers
  • VAT: freight transport services
  • Stamp duty land tax (SDLT): leases simplification

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