Stamp duty land tax surcharge on non-UK residents
With effect from 1 April 2021, a 2% stamp duty land tax surcharge will apply to non-UK residents purchasing residential property in England and Northern Ireland.
Stamp duty and stamp duty reserve tax
On the transfer of unlisted securities to connected companies, the Government previously introduced a targeted market value rule to prevent artificial reduction of the tax due on share acquisitions when listed shares were transferred to a connected company.
Spring Budget 2020 announced this rule will be extended to unlisted companies in order to prevent further tax avoidance.
As part of this change, legislation will be amended to prevent a double tax charge arising on certain company reorganisations.
The duties on alcoholic drinks – beer, cider, wine and spirits – are all being frozen.
There has been a freeze on fuel duty for the last 10 years, and this continues for at least another year.
Gross gaming yield bands for gaming duty will increase in line with inflation from 1 April 2020.
Vehicle excise duty
The government has announced vehicle excise duty (VED) rates for cars, vans and motorcycles will increase in line with the RPI from 1 April 2020.
Starting from 1 April 2020, any zero-emission vehicle with a list price exceeding £40,000 registered from 1 April 2017 to 31 March 2025 will be exempt from the VED ‘expensive car’ supplement.
Plastic packaging tax
A new plastic packaging tax will take effect from 1 April 2022 at a rate of £200 per tonne.
This will apply to plastic packaging produced in, or imported into, the UK that does not contain at least 30% recycled plastic.
The lead time is intended to give those businesses affected time to adapt.
The Government intends to publish draft legislation later this year for consultation, which will address an exemption for producers and importers of small quantities of plastic packaging, as well as how the tax will be collected, recovered and enforced.
Red diesel relief
From April 2022, the Government will remove the entitlement to the use of red diesel and rebated biofuels although exceptions will be in place for agriculture, rail and for non-commercial heating.
There will also be a consultation on whether the exceptions should be widened to include other specific industries.
The measure is aimed at incentivising business to move to greener alternatives.
Small brewers’ relief
The Chancellor expects the results of the review into small brewers’ relief will be published in the spring.
The Government will freeze the aggregates levy rate in 2020/21 and will publish its next steps as part of the comprehensive review of the levy.
Climate change levy
As previously announced, the Government’s intention to make gas and electricity rates equal by 2025.
In order for the UK to meet its net-zero commitment, the Government recognises that it must continue to remove incentives to choose gas over electricity.
With this in mind, the rates on electricity are being frozen, while the rate on gas will rise to £0.00568/kWh in 2022/23 to £0.00672/kWh in 2023/24.
Landfill tax is charged in England and Northern Ireland on material disposed of at a landfill site.
It aims to encourage recycling and composting, and to minimise material going to landfill.
Standard and lower rates are being increased on 1 April 2020 by RPI as follows:
|Material sent to landfill||Rates from 1 April 2019||Rates for 1 April 2020|