Content Image

Resources

Duties - stamp duty surcharge for non-UK residents

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.

Alcohol duties

The duties on alcoholic drinks - beer, cider, wine and spirits - are all being frozen.

Fuel duty

There has been a freeze on fuel duty for the last 10 years, and this continues for at least another year.

Gaming duty

Gross gaming yield bands for gaming duty will increase in line with inflation from 1 April 2020.

Air passenger duty

Long-haul air passenger duty (APD) will increase by the Retail Prices Index (RPI) with effect from 1 April 2021, with short-haul rates remaining frozen at £13.

The rates are announced a year in advance to give industry sufficient advance notice. The rates applying from 1 April 2021 are as follows:

 

Destination bands Reduced rate  Standard rate Higher rate
Band A £13 £26 £78
Band B

£82

£180 £541

 

 *APD rates for flights starting from UK airports, excluding Northern Ireland, and the Scottish Highlands and Islands region.

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.

Tobacco duty

Most tobacco duties will increase by RPI plus 2% with immediate effect.

The exception is hand-rolling tobacco which will suffer an increase of RPI plus 6%.