CCH Live News - Budget 2012

Budget 2012

Rates & Allowances

Overview

Detailed Budget Measures

Rates and Allowances

Personal Tax And Benefits

At Budget 2011 the Government announced that:
• the personal allowance for under 65’s will increase by £630 bringing it to £8,105 for 2012-13; and

• the basic rate limit will fall by £630, taking it from £35,000 in 2011-12 to £34,370 in 2012-13.

At Budget 2012 the Government announced changes to personal allowances from 2013-14:
• people born after 5 April 1938 but before 6 April 1948 will be entitled to a personal allowance of £10,500; and

• people born before 6 April 1938 will be entitled to a personal allowance of £10,660.

For 2013-14, people born after 5 April 1948 will be entitled to a personal allowance of £9,205. The Government also announced that the basic rate limit will be reduced to £32,245.

The Government also announced the main rates of income tax for 2013-14.

Income tax bands of taxable income (£ per year)
  Tax year 2011-12 Tax year 2012-13 Tax year 2013-14
Basic rate1 £0 – 35,000 £0 – 34,370 £0 – 32,245
Higher rate £35,001 – 150,000 £34,371 – 150,000 £32,246 – 150,000
Additional rate Over £150,000 Over £150,000 Over £150,000


1 There is a starting rate for savings income only. If an individual’s taxable non-savings income (i.e. after deduction of their personal allowance) exceeds the starting rate limit, then the 10 per cent starting rate for savings will not be available for savings income. The starting rate limit for 2011-12 it is £2,560 and for 2012-13 it is £2,710.


Income tax rates
Tax year 2011-12 Tax year 2012-13 Tax year 2013-14
Basic rate 20% 20% 20%
Higher rate 40% 40% 40%
Additional rate 50% 50% 45%
Dividend ordinary rate (for dividends otherwise taxable at the basic rate (effective rate with tax credit)) 10%
(0%)
10%
(0%)
10%
(0%)
Dividend upper rate (for dividends otherwise taxable at the higher rate (effective rate with tax credit)) 32.5%
(25%)
32.5%
(25%)
32.5%
(25%)
Dividend additional rate (for dividends otherwise taxable at the additional rate (effective rate with tax credit)) 42.5%
(36.1%)
42.5%
(36.1%)
37.5%
(30.6%)
Special rates for trustees’ income
Tax year 2011-12 Tax year 2012-13 Tax year 2013-14
Standard rate on first £1,000 of income which would otherwise be taxable at the special rates for trustees. Up to 20%, depends on the type of income Up to 20%, depends on the type of income Up to 20%, depends on the type of income
Trust rate 50% 50% 45%
Dividend trust rate 42.5% 42.5% 37.5%

Income tax allowances (£ per year)
Personal allowance2 Tax year 2011-12 Tax year 2012-13 Tax year 2013-14
Age under 653 £7,475 £8,105 N/A
Born after 5 April 19483 N/A N/A £9,205
Age-related allowance (65-74)3, 4 £9,940 £10,500 N/A
Born after 5 April 1938 but before
6 April 19483, 4
N/A N/A £10,500
Age-related allowance (75+)3, 4 £10,090 £10,660 N/A
Born before 6 April 19383, 4 N/A N/A £10,660
Income limit for under 65 personal allowance £100,000 £100,000 N/A
Income limit for personal allowance
(born after 5 April 1948)
N/A N/A £100,000
Income limit for age-related allowances £24,000 £25,400 N/A
Income limit for personal allowances
(born before 6 April 1948)
N/A N/A TBA
Married couples allowance5
Age over 756, 7 £7,295 £7,705 TBA
Minimum amount of married couple’s allowance £2,800 £2,960 TBA
Blind person’s allowance
Blind person’s allowance £1,980 £2,100 TBA


2 Up to and including 2012-13, the amount of an individual's personal allowance depends upon their age and their income in the tax year. From 2013-14, the amount of an individual's personal allowance depends ontheir date of birth and their income in the tax year. This change has no effect on an individual's entitlement to the married couple's allowance or the blind person's allowance.

3 This allowance reduces where the individual’s income is above £100,000 - by £1 for every £2 of income above the £100,000 limit. This reduction applies irrespective of age or date of birth.

4 This allowance reduces where the individual’s income is above the income limit (£24,000 for 2011-12, £25,400 for 2012-13) by £1 for every £2 of income above the limit until they reach the level of the personal allowance for those aged under 65, or from 2013-14, the level of the personal allowance for those born after 5 April 1948.

5 Available to people born before 6 April 1935.

6 Tax relief for this allowance is given at 10 per cent.

7 This allowance reduces where the individual’s income is above the income limit (£24,000 for 2011-12, £25,400 for 2012-13), by £1 for every £2 of income above the limit until it reaches the minimum amount. Any reduction applies after any reduction to the individual’s personal allowance.


 

Company car tax

Tax year 2014-158

Tax year2015-16

Tax year 2016-17

CO2 emissions, g/km

Appropriate % of car list price taxed

CO2 emissions, g/km

Appropriate % of car list price taxed

CO2 emissions, g/km

Appropriate

% of car list price taxed

Petrol fuelled cars

Diesel fuelled cars9

Petrol fuelled cars

Diesel fuelled cars10

Petrol and diesel fuelled cars

0

0

0

0 to 94

13

16

0 to 94

15

1-75

5

8

95-99

14

17

95-99

16

76 to 94

11

14

100-104

15

18

100-104

17

95-99

12

15

105-109

16

19

105-109

18

100-104

13

16

110-114

17

20

110-114

19

105-109

14

17

115-119

18

21

115-119

20

110-114

15

18

120-124

19

22

120-124

21

115-119

16

19

125-129

20

23

125-129

22

120-124

17

20

130-134

21

24

130-134

23

125-129

18

21

135-139

22

25

135-139

24

130-134

19

22

140-144

23

26

140-144

25

135-139

20

23

145-149

24

27

145-149

26

140-144

21

24

150-154

25

28

150-154

27

145-149

22

25

155-159

26

29

155-159

28

150-154

23

26

160-164

27

30

160-164

29

155-159

24

27

165-169

28

31

165-169

30

160-164

25

28

170-174

29

32

170-174

31

165-169

26

29

175-179

30

33

175-179

32

170-174

27

30

180-184

31

34

180-184

33

175-179

28

31

185-189

32

35

185-189

34

180-184

29

32

190-194

33

36

190-194

35

185-189

30

33

195-199

34

37

195-199

36

190-194

31

34

200-204

35

37

200 and above

37

195-199

32

35

205-209

36

37

200-204

33

35

210 and above

37

37

205-209

34

35

210 and above

35

35


8 2014-15 rates legislated at Finance Bill 2012.

9 A three percentage point diesel supplement applies to wholly propelled diesel cars with percentages up to 32 per cent, to a maximum of 35 per cent.

10 A three percentage point diesel supplement applies to wholly propelled diesel cars with percentages up to 34 per cent, to a maximum of 37 per cent.


National Insurance Contributions (NICs)

Employee and employer rates and thresholds (£ per week)

Class 1 NICs

Tax year

2011-12

Tax year

2012-13

Lower earnings limit (LEL) for class 1 NICs

£102.00

£107.00

Upper earnings limit (UEL) for employee’s (primary) class 1

NICs

£817.00

£817.00

Upper accrual point (UAP)

£770.00

£770.00

Primary threshold

£139.00

£146.00

Secondary threshold

£136.00

£144.00

Employee’s (primary) class 1 contribution rates

2011-12 weekly earnings from £139.01 to £817.00

12%

N/A

2011-12 weekly earnings above £817.00

2%

N/A

2012-13 weekly earnings from £146.01 to £817.00

N/A

12%

2012-13 weekly earnings above £817.00

N/A

2%

Employee’s contracted-out rebate

Employee’s contracted-out rebate - salary related schemes

(COSR) between LEL & UAP

1.6%

1.4%

Employee’s contracted-out rebate - money purchase schemes (COMP) between LEL and UAP

1.6%

Abolished from

6 April 2012

Married woman’s reduced rate for (primary) class 1 contribution rates11

2011-12 weekly earnings from £139.01 to £817.00

5.85%

N/A

2011-12 weekly earnings above £817.00

2%

N/A

2012-13 weekly earnings from £146.01 to £817.00

N/A

5.85%

2012-13 weekly earnings above £817.00

N/A

2%

Employer’s (secondary) class 1 contribution rates

2011-12 weekly earnings above £136.00

13.8%

N/A

2012-13 weekly earnings above £144.00

N/A

13.8%

Employer’s contracted-out rebate

Employer’s COSR schemes between LEL and UAP

3.7%

3.4%

Employer’s COMP schemes  between LEL and UAP

1.4%

Abolished from

6 April 2012


11 The reduced rate applies to women married before 6 April 1977 who have elected to pay a reduced rate of class 1 contributions.


Self-employed and others rates and thresholds (£ per week)

Class 2 NICs 12

Tax year

2011-12

Tax year

2012-13

Self-employed class 2 NICs

£2.50

£2.65

Small earnings annual exception level class 2 NICs

£5,315

£5,595

Volunteer development workers class 2 NICs

£5.10

£5.35

Share fishermen class 2 NICs

£3.15

£3.30

Self-employed and others rates and thresholds (£ per week)

Class 3 NICs

Tax year

2011-12

Tax year

2012-13

Voluntary contributions

£12.60

£13.25

Self-employed and others rates and thresholds

Class 4 NICs

Tax year

2011-12

Tax year

2012-13

2011-12 annual profits below LPL £7,225

Nil

N/A

2011-12 annual profits above LPL £7,225 but below UPL

£42,475

9%

N/A

2011-12 annual profits above UPL £42,475

2%

N/A

2012-13 annual profits below LPL £7,605

N/A

Nil

2012-13 annual profits above LPL £7,605 but below UPL

£42,475

N/A

9%

2012-13 annual profits above LPL £42,475

N/A

2%


12 Class 2 NICs are paid at a weekly flat rate by all self-employed persons. Those with profits less than, or expected to be less than, the level of the small earnings exception may apply for exemption from paying class 2 contributions.


Working And Child Tax Credits, Child Benefit And Guardians Allowance

Working and child tax credits

£ per year (unless stated)

From April 2011

From April 2012

Working tax credit

Basic element

£1,920

£1,920

Couple and lone parent element

£1,950

£1,950

30 hour element

£790

£790

Disabled worker element

£2,650

£2,790

Severe disability element

£1,130

£1,190

50+ Return to work payment (16-29 hours)

£1,365

Removed

50+ Return to work payment (30+ hours)

£2,030

Removed

Childcare element of the working tax credit

Maximum eligible cost for one child

£175 per week

£175 per week

Maximum eligible cost for two or more children

£300 per week

£300 per week

Percentage of eligible costs covered

70%

70%

Child tax credit

Family element

£545

£545

Child element

£2,555

£2,690

Disabled child element

£2,800

£2,950

Severely disabled child element

£1,130

£1,190

Income thresholds and withdrawal rates

First income threshold

£6,420

£6,420

First withdrawal rate

41%

41%

Second income threshold

£40,000

Withdrawn

Second withdrawal rate

41%

41%

First threshold for those entitled to child tax credit only

£15,860

£15,860

Income disregard

£10,000

£10,000

Income fall disregard

N/A

£2,500


Child benefit (£ per week)

From April 2011

From April 2012

Eldest/only child

£20.30

£20.30

Other children

£13.40

£13.40

Guardians allowance (£ per week)

Guardians allowance

£14.75

£15.55

Capital, Assets And Property

Pensions savings tax relief

Tax year 2011-12 allowance limit

Tax year 2012-13 allowance limit

Lifetime allowance

£1.8 million

£1.5 million

Annual allowance

£50,000

£50,000

Individual Savings Account

(ISA)

Tax year 2011-12

Tax year 2012-13

Cash value of ISA limit

£10,680, up to £5,340 of which can be saved in cash

£11,280, up to £5,640 of which can be saved in cash

Capital gains tax

Tax year 2011-12

Tax year 2012-13

Rates for individuals

18% / 28%13

18% / 28% ¹

Rates for trustees and personal representatives

28%

28%

Annual exempt amount (AEA) for individuals and personal representatives14

£10,600

£10,600

AEA for most trustees

£5,300

£5,300

Rate on gains subject to entrepreneurs’ relief

10%

10%

Entrepreneurs’ relief lifetime limit of gains

£10,000,000

£10,000,000

Inheritance tax

Tax year 2011-12

Tax year 2012-13

Rate

40%

40%

Lower rate

N/A

36%15

Nil rate band

£325,000

£325,000


13 Rates for individuals: 18 per cent on gains up to the unused amount of the basic rate income tax band (if any) and 28 per cent on gains above that amount.

14 Personal representatives are entitled to the annual exempt amount for the tax year in which the individual dies and the next two years.

15 Budget 2011 announced that for deaths on or after 6 April 2012, a lower rate of Inheritance tax of 36 per cent will be introduced where 10 per cent or more of the deceased person’s net estate is left to charity.


Stamp duty land tax

Rate

Threshold for tax year 2011-12

Threshold for tax year 2012-13

Residential

Non-residential

Residential

Non-residential

0%

£0 – 125,000

£0 – 150,000

£0 – 125,000

£0 – 150,000

1%

£125,001 –

250,000

£150,001 –

250,000

£125,001 –

250,000

£150,001 –

250,000

3%

£250,001 –

500,000

£250,001 –

500,000

£250,001 –

500,000

£250,001 –

500,000

4%

£500,001 –

£1,000,000

Over £500,000

£500,001 –

£1,000,000

Over £500,000

5%

Over £1,000,000

N/A

£1,000,001 –

£2,000,000

N/A

7%

N/A

N/A

Over £2,000,000

N/A

Stamp Duty and stamp duty reserve tax

Band

Tax year 2011-12

Tax year 2012-13

Standard rate

0.5%

0.5%

Higher rate

1.5%

1.5%

Budget 2012 also announced a 15 per cent rate charge of stamp duty land tax on certain non-natural persons enveloping a residential property where the consideration given exceeds £2million. Where the interest/property with a consideration in excess of £2 million is purchased in sole or joint names then a 15 per cent rate SDLT charge will apply to the following:

• all such purchases by bodies corporate (largely companies);
• all collective investment schemes; and
• all partnerships where there are one or more members are one of the above.

Business And Financial Services

The June Budget 2010 and Budget 2011 announced changes to corporation tax from April 2011, these are set out below. Budget 2012 announces further changes to corporation tax from April 2012.

The main rate of corporation tax will be reduced by a further one per cent, in addition to the reductions announced in the June Budget 2010 and Budget 2011. This will take the rate from 26 per cent to 24 per cent in April 2012. There will be two further annual one per cent cuts reducing the corporation tax main rate to 22 per cent by the Financial Year 2014-2015.

Corporation tax rates

Level of profits

Financial year

2011-12

Financial year

2012-13

Financial year

2013-14

£0 - £300,000: small profits rate

20%

20%

TBA

£300,001 - £1,500,000

Marginal rate

Marginal rate

Marginal rate

Marginal rate fraction

3/200th

1/100

TBA

£1,500,001 or more: main rate

26%

24%

23%

North sea oil and gas ring fenced profits16

See footnote

See footnote

See footnote


16 For North Sea Oil and gas ring fenced profits the main rate is 30 per cent and the small profits rate is 19 per cent. The marginal relief ring fenced fraction is 11/400ths.


Corporation tax allowances and reliefs

Financial year

2011-12

Financial year

2012-13

Financial year

2013-14

Plant and machinery: main rate expenditure

20%

18%

18%

Plant and machinery: special rate expenditure

10%

8%

8%

Annual investment allowance

£100,000

£25,000

£25,000

First year allowances (e.g. for certain energy-saving/ water efficient products)

100%

100%

100%

R&D tax credits SME scheme

200%

225%

225%

R&D tax credits Large companies scheme

130%

130%

To be decided

Film tax relief

100% limited budget, 80% large budget

100% limited budget, 80% large budget

100% limited budget, 80% large budget

Open ended investment companies and authorised unit trusts17

See footnote

See footnote

See footnote

Bank levy

Chargeable equity and long-term chargeable liabilities

Short-term chargeable liabilities

1 January – 28 February 2011

0.025%

0.05%

1 March – 30 April 2011

0.05%

0.1%

1 May – 31 December 2011

0.0375%

0.075%

1 January – 31 December 2012

0.044%

0.088%

1 January 2013 onward

0.0525%

0.105%


17 For open ended investment companies and authorised unit trusts the applicable corporation tax rate is 20 per cent.


UK oil and gas taxes

Tax year 2011-12

Tax year 2012-13

Petroleum revenue tax

50%

50%

Ring fence corporation tax18

See footnote

See footnote

Supplementary charge

32% on or after 24

March 2011

32%

Business rates

Tax year 2011-12

Tax year 2012-13

England standard multiplier

43.3p

45.8p

England small business multiplier

42.6p

45.0p


18 For North Sea oil and gas ring fenced profits the main rate is 30 per cent and the small profits rate is 19 per cent. The marginal relief ring fenced fraction is 11/400ths.


Indirect Tax

Budget 2012 confirmed that alcohol duty rates will increase by two per cent above retail price inflation.

Alcohol duty

Duty rate from 28

March 2011

Duty rate from 1

October 2011

Duty rate from 26

March 2012

Rate per litre of pure alcohol

Spirits

25.52

25.52

26.81

Spirits-based RTDs

25.52

25.52

26.81

Wine and made-wine: exceeding 22%

alcohol by volume (abv)

25.52

25.52

26.81

Rate per hectolitre % of alcohol in the beer

Beer - lower strength: exceeding 1.2%

- not exceeding 2.8% abv.

18.57

9.29

9.76

Beer - General Beer Duty: Exceeding

2.8% - not exceeding 7.5% abv.

18.57

18.57

19.51

Beer - High strength: Exceeding 7.5% - in addition to the General Beer Duty

18.57

4.64 (+18.57)

4.88 (+19.51)

Rate per hectolitre of product

Still cider and perry: exceeding 1.2% - not exceeding 7.5% abv .

35.87

35.87

37.68

Still cider and perry: exceeding 7.5% - less than 8.5% abv.

53.84

53.84

56.55

Sparkling cider and perry: exceeding

1.2% - less than 5.5%abv.

35.87

35.87

37.68

Sparkling cider and perry: exceeding

5.5%abv- less than 8.5% abv.

233.55

233.55

245.32

Wine and made-wine: exceeding 1.2%

- not exceeding 4% abv.

74.32

74.32

78.07

Wine and made-wine: exceeding 4% - not exceeding 5.5% abv.

102.21

102.21

107.36

Still wine and made-wine: exceeding

5.5% - not exceeding 15% abv.

241.23

241.23

253.39

Wine and made-wine: exceeding 15% - not exceeding 22% abv.

321.61

321.61

337.82

Sparkling wine and made-wine:

exceeding 5.5% - less than 8.5% abv.

233.55

233.55

245.32

Sparkling wine and made-wine: exceeding 8.5% - not exceeding 15% abv.

308.99

308.99

324.56

Budget 2012 announced that tobacco duty rates will increase by five per cent above retail price inflation.

Tobacco products
From 6pm 23 March 2011 Ad valorem element From 6pm 21 March 2012 Ad valorem element
Cigarettes £154.95 per 1000 cigarettes 16.5% of retail price £167.41 per 1000 cigarettes 16.5% of retail price
Cigars £193.29/kg N/A £208.83/kg N/A
Hand rolling tobacco £151.90/kg N/A £164.11/kg N/A
Other smoking tobacco and chewing tobacco £84.98/kg N/A £91.81/kg N/A

Budget 2012 confirmed that gaming duty bands will increase in line with inflation for accounting periods starting on or after 1 April 2012, all rates of amusement machine licence duty will be increased in line with inflation from 4pm on 23 March 2012 and machine games duty will be introduced from 1 February 2013.

Gambling duties

Tax year 2011-12

Tax year 2012-13

Bingo duty

Percentage of bingo promotion profits

20%

20%

General betting duty

Percentage of ‘net stake receipts’ (essentially the gross profits from bookmaking) for fixed odds bets and totalisator bets on horse or dog races

15%

15%

Percentage of ‘net stake receipts’ for financial spread bets

3%

3%

Percentage of ‘net stake receipts’ for all other spread bets

10%

10%

Lottery duty

Percentage of the price paid or payable on taking a ticket or chance in a lottery.

12%

12%

Remote gaming duty

Percentage of remote gaming profits

15%

15%

Machine games duty19

Percentage of the net takings from dutiable machine games with a maximum cost to play not more than 10p and a maximum cash prize not more than £8

N/A

5%

Percentage of net takings from all other dutiable machine games.

N/A

20%


19 Machine games duty will be introduced from 1 February 2013 and will replace both amusement machine licence duty and VAT.


Amusement machine licence duty

Band

Description

12 month premises based licence old rate

12 month premises based licence new rate20

A

A gaming machine that does not fall into any other category

£6,110

£6,295

B1

A gaming machine in respect of which the amount required to play the game once does not exceed £2, and the value of the prize that may be won in

any one game does not exceed £4,000 in money or as a non-monetary prize.

£3,055

£3,150

B2

A gaming machine in respect of which the amount required to play the game once does not exceed £100, and the value of the prize that may be won in any one game does not exceed £500 in money or as a non-monetary prize.

£2,405

£2,480

B3

A gaming machine in respect of which the amount required to play the game once does not exceed £2, and the value of the prize that may be won in

any one game does not exceed £500 in money or as a non-monetary prize.

£2,405

£2,480

B4

A gaming machine in respect of which the amount required to play the game once does not exceed £1, and the value of the prize that may be won in

any one game does not exceed £250 in money or as a non-monetary prize.

£2,185

£2,250

C

A gaming machine in respect of which the amount required to play the game once does not exceed £1, and the value of the prize that may be won in any one game does not exceed £70 in

money or as a non-monetary prize; and

A gaming machine in respect of which the amount required to play the game once does not exceed 5p.

£905

£935


20 12 month premises based licence, new rates apply to licence applications received by HMRC after 4pm on 23 March 2012.


 

Gaming duty

Tax rate

15%

20%

30%

40%

50%

Gross gaming yield

£2,067,000

£1,425,000

£2,496,000

£5,268,000

Remainder

New figures for accounting periods beginning on or after 1 April 2012

Tax rate

15%

20%

30%

40%

50%

Gross gaming yield

£2,175,000

£1,499,500

£2,626,000

£5,542,500

Remainder

Insurance Premium Tax

Tax year 2011-12

Tax year 2012-13

Standard rate

6%

6%

Higher rate

20%

20%

Budgets 2011 and 2012 announced that climate change levy rates will increase in line with inflation in 2012-13 and 2013-14 respectively.

Climate change levy

Commodity

Rates from 1 April 2012

Rates from 1 April 2013

Electricity

£0.00509 per kilowatt hour

£0.00524 per kilowatt hour

Natural gas

(a different rate applies in Northern Ireland until 31

October 2013)

£0.00177 per kilowatt hour

£0.00182 per kilowatt hour

Natural gas

(Northern Ireland)

£0.00062 per kilowatt hour

£0.00064 per kilowatt hour until

31 October 2013 then main natural gas rate applies

Liquefied petroleum gas

£0.01137 per kilogram

£0.01172 per kilogram

Any other taxable commodity

£0.01387 per kilogram

£0.01429 per kilogram

Budget 2011 announced that the aggregates levy will be frozen at £2.00 per tonne from 1 April 2011, with the planned increase to £2.10 deferred to 1 April 2012.

Budget 2012 announced that the planned increase on 1 April 2012 would again be deferred, until 1 April 2013.

Aggregates levy

Rate from 1 April 2012

Rate from 1 April 2013

Taxable aggregate

£2.00/tonne

£2.10/tonne

Budgets 2011 and 2012 confirmed previously announced £8 per tonne increases to the standard rate of landfill tax for 2012-13 and 2013-14; and froze the lower rate in both years.

Landfill tax

Rate from 1 April 2012

Rate from 1 April 2013

Standard rate

£64/tonne

£72/tonne

Lower rate

£2.50/tonne

£2.50/tonne

Air Passenger Duty (APD) rates for 2012-13 were set out at the 2011 Autumn Statement. The APD rates for 2013-14 are set out below.

Air passenger duty

Bands

(approximate distance in miles from the UK)

Reduced rate 21

(lowest class of travel)

Standard rates 3

(other than the lowest class of travel)

From

1 April

2011

From

1 April

2012

From

1 April

2013

From

1 April

2011

From

1 April

2012

From

1 April

2013

Band A (0 – 2000 miles)

£12

£13

£13

£24

£26

£26

Band B (2001 – 4000 miles)

£60

£65

£67

£120

£130

£134

Band C (4001 – 6000 miles)

£75

£81

£83

£150

£162

£166

Band D (over 6000 miles)

£85

£92

£94

£170

£184

£188


21 Standard APD rates are twice reduced rates. From 1 November 2011, the direct long-haul rates of APD for departures from Northern Ireland (bands B, C and D) were reduced to the short-haul rate (band A). From 1 April 2013, APD will apply to all flights aboard aircraft 5.7 tonnes and above. The rate for flights aboard aircraft 20 tonnes and above with fewer than 19 seats will be double the standard rate.


The Government announced at Autumn Statement 2011 that the 3.02ppl fuel duty increase that was due to take effect on 1 January 2012 will be deferred to 1 August 2012 and the inflation increase that was planned for 1 August 2012 will be cancelled. This will ensure that there will only be one RPI increase this year.

Fuel duty – pound per litre (unless stated)

On and after 6pm on

23 March 2011

On and after

1 August 2012

Light oils

Unleaded petrol

0.5795

0.6097

Light oil (other than unleaded petrol or aviation gasoline )

0.6767

0.7069

Aviation gasoline (Avgas)

0.3770

0.3966

Light oil delivered to an approved person for use as furnace fuel

0.1070

0.1126

Heavy oils

Heavy oil (Diesel)

0.5795

0.6097

Marked gas oil

0.1114

0.1172

Fuel oil

0.1070

0.1126

Heavy oil other than fuel oil, gas oil or kerosene used as fuel.

0.1070

0.1126

Kerosene to be used as motor fuel off road or in an excepted vehicle

0.1114

0.1172

Biofuels

Bio-ethanol

0.5795

0.6097

Biodiesel

0.5795

0.6097

Biodiesel for non road use

0.1114

0.1172

Biodiesel blended with gas oil not for road fuel use

0.1114

0.1172

Road fuel gases

Liquefied petroleum gas (LPG)

0.3161 p/kg

0.3734 p/kg

Road fuel Natural gas including biogas

0.2470 p/kg

0.2907 p/kg


Budget 2012 announced that vehicle excise duty (VED) rates will increase by RPI from April 2012, and rates for heavy goods vehicles will be frozen.22

VED bands and rates for cars registered on or after March 2001 (graduated VED)

VED

band

CO2 emissions (g/km)

Tax year 2011-12

Tax year 2012-1323

Standard rate24

First year rate4

Standard rate4

First year rate4

A

Up to 100

£0

£0

£0

£0

B

101-110

£20

£0

£20

£0

C

111-120

£30

£0

£30

£0

D

121-130

£95

£0

£100

£0

E

131-140

£115

£115

£120

£120

F

141-150

£130

£130

£135

£135

G

151-165

£165

£165

£170

£170

H

166-175

£190

£265

£195

£275

I

176-185

£210

£315

£215

£325

J

186-200

£245

£445

£250

£460

K25

201-225

£260

£580

£270

£600

L

226-255

£445

£790

£460

£815

M

Over 255

£460

£1,000

£475

£1,030

VED bands and rates for private and light good vehicles registered before March 2001 (pre-graduated VED)

Engine size

Tax year 2011-12

Tax year 2012-13

1549cc and below

£130

£135

Above 1549cc

£215

£220


22 A full list of HGV rates is available on the HMRC website http://carfueldata.direct.gov.uk/new-vehicle-tax.aspx

23 2012-13 rates take effect from 1st April 2012.

24 Alternative fuel discount 2010-11 onwards: £10 for all cars

25 Includes cars emitting over 225g/km registered before 23 March 2006


VAT

January 2011-April 2011

April 2011-12

Standard rate

20%

20%

Reduced rate

5%

5%

Zero rate

0%

0%

Exempt

n/a

n/a

VAT registration and deregistration thresholds

From April 2011

From April 2012

VAT registration threshold

£73,000

£77,000

VAT deregistration threshold

£71,000

£75,000


VAT fuel scale charges26

Businesses must use these new VAT fuel scale charges from the start of their next prescribed accounting period beginning on or after 1 May 2012.

CO2 band

VAT fuel scale charge, 12 month period, £

VAT on 12 month charge, £

VAT exclusive 12 month charge, £

120 or less

125

130

135

140

145

150

155

160

165

170

175

180

185

190

195

200

205

210

215

220

225 or more

£665.00

£1,000.00

£1,065.00

£1,135.00

£1,200.00

£1,270.00

£1,335.00

£1,400.00

£1,470.00

£1,535.00

£1,600.00

£1,670.00

£1,735.00

£1,800.00

£1,870.00

£1,935.00

£2,000.00

£2,070.00

£2,135.00

£2,200.00

£2,270.00

£2,335.00

£110.83

£166.67

£177.50

£189.17

£200.00

£211.67

£222.50

£233.33

£245.00

£255.83

£266.67

£278.33

£289.17

£300.00

£311.67

£322.50

£333.33

£345.00

£355.83

£366.67

£378.33

£389.17

£554.17

£833.33

£887.50

£945.83

£1,000.00

£1,058.33

£1,112.50

£1,166.67

£1,225.00

£1,279.17

£1,333.33

£1,391.67

£1,445.83

£1,500.00

£1,558.33

£1,612.50

£1,666.67

£1,725.00

£1,779.17

£1,833.33

£1,891.67

£1,945.83


26 Where the CO2 emission figure is not a multiple of five, the figure is rounded down to the next multiple of five to determine the level of the charge. For a bi-fuel vehicle which has two CO2 emissions figures, the lower of the two figures should be used. For cars which are too old to have a CO2 emissions figure, you should identify the CO2 band based on engine size, as follows:
• If its cylinder capacity is 1,400cc or less, use CO2 band 140;
• If its cylinder capacity exceeds 1,400cc but does not exceed 2,000cc, use CO2 band 175;
• If its cylinder capacity exceeds 2,000cc, use CO2 band 225 or above.


Value Added Tax (VAT) – Fuel scale charges

Businesses must use these new VAT fuel scale charges from the start of their next prescribed accounting period beginning on or after 1 May 2012.

CO2 band

VAT fuel scale charge, 3 month period, £

VAT on 3 month charge, £

VAT exclusive 3 month charge, £

120 or less

125

130

135

140

145

150

155

160

165

170

175

180

185

190

195

200

205

210

215

220

225 or more

166.00

250.00

266.00

283.00

300.00

316.00

333.00

350.00

366.00

383.00

400.00

416.00

433.00

450.00

467.00

483.00

500.00

517.00

533.00

550.00

567.00

583.00

27.67

41.67

44.33

47.17

50.00

52.67

55.50

58.33

61.00

63.83

66.67

69.33

72.17

75.00

77.83

80.50

83.33

86.17

88.83

91.67

94.50

97.17

138.33

208.33

221.67

235.83

250.00

263.33

277.50

291.67

305.00

319.17

333.33

346.67

360.83

375.00

389.17

402.50

416.67

430.83

444.17

458.33

472.50

485.83


Value Added Tax (VAT) – Fuel scale charges

Businesses must use these new VAT fuel scale charges from the start of their next prescribed accounting period beginning on or after 1 May 2012.

CO2 band

VAT fuel scale charge, 1 month period, £

VAT on 1 month charge, £

VAT exclusive 1 month charge, £

120 or less

125

130

135

140

145

150

155

160

165

170

175

180

185

190

195

200

205

210

215

220

225 or more

55.00

83.00

88.00

94.00

100.00

105.00

111.00

116.00

122.00

127.00

133.00

138.00

144.00

150.00

155.00

161.00

166.00

172.00

177.00

183.00

189.00

194.00

9.17

13.83

14.67

15.67

16.67

17.50

18.50

19.33

20.33

21.17

22.17

23.00

24.00

25.00

25.83

26.83

27.67

28.67

29.50

30.50

31.50

32.33

45.83

69.17

73.33

78.33

83.33

87.50

92.50

96.67

101.67

105.83

110.83

115.00

120.00

125.00

129.17

134.17

138.33

143.33

147.50

152.50

157.50

161.67