Finance Bill Tracking Service 2010 | Budget 2010

BN51 LANDLINE DUTY

Who is likely to be affected?

1. Owners of local loops, wholesalers, retailers and end users of local loops.

A local loop is the physical circuit connecting a network termination point to a public electronic communications network.

General description of the measure

2. Legislation will be introduced in Finance Bill 2010 to establish a new duty on landlines in the UK. Accompanying secondary legislation will be laid after Finance Bill 2010 has received Royal Assent.

Operative date

3. The duty has effect on and after 1 October 2010.

Current law and proposed revisions

4. The duty will be set at 50 pence per line per month.

5. The duty will apply when a local loop is made available for use and will be payable by the owner of the loop.

6. It is expected that the owners will recoup the duty from the end user, wholesaler or retailer.

Further advice

7. If you have any questions about this change, please contact the Excise and Customs Helpline on 0845 010 9000. Information about Budget measures is available on the HM Revenue & Customs website at www.hmrc.gov.uk