Other measures announced
Insurance premium tax
Stamp duty land tax partnerships
Stamp duty and stamp duty reserve tax relief for clearing houses
Overpayments of stamp duty land tax (SDLT) and petroleum revenue tax (PRT)
Aggregates levy
Tobacco smuggling in the post
Climate change levy
Landfill tax
Trusts and asbestos victims
Insurance premium tax
The 2009 Pre Budget Report proposals and draft legislation have been fine tuned in order to better target the avoidance issues involving fees charged under separate contracts. The new amended rules regarding fee payments received apply on or after 24 March 2010.
Insurance premium tax is paid by an insurer on the premium charged under a taxable insurance contract, which includes any commissions or fees unless they are charged to the insured under a separate contract.
Stamp duty land tax partnerships
With effect on or after 24 March 2010 measures are introduced to avoid the current exploitation of the stamp duty land tax (SDLT) rules for partnerships on some land transactions. The legislation will be in Finance Bill 2010 and will disapply the partnerships rules from a "notional land transaction."
The SDLT rules for partnerships currently apply to a "notional land transaction." These measures will affect those who seek to take advantage of the special stamp duty land tax rules for partnerships.
Stamp duty and stamp duty reserve tax relief for clearing houses
Draft legislation will be introduced in the Finance Bill 2010 to make clear that the power to make regulations to remove multiple charges to stamp duty or stamp duty reserve tax (SDRT), extends to regulations providing relief for members of clearing houses and their nominees. This measure will have effect on and after the date that the Finance Bill 2010 receives Royal Assent.
Overpayments of stamp duty land tax (SDLT) and petroleum revenue tax (PRT)
Measures announced in the Budget will amend the SDLT and PRT error or mistake relief rules. The changes will provide a means of reclaiming overpayments where there is no other statutory route. The changes seek to ensure there is a comprehensive statutory scheme of remedies in these cases.
In order to allow a transitional period in which claims can be made under the old rules, the measure will take effect on and after 1 April 2011. From that time the time limit for claiming repayments under both provisions reduces from six years to four years.
These measures will remove the requirement that the overpayment must be the result of a mistake in a return and that it must be made under an assessment. Furthermore the current restrictions on the right of appeal will be removed, allowing an appeal to the courts on the same grounds as appeals against other matters.
Aggregates levy
From 1 April 2011 the rate of aggregates levy is to increase form £2.00 per tonne to £2.10 per tonne.
The Northern Ireland Aggregates Levy Credit Scheme is to be extended for a further ten years to 31 March 2021. This scheme grants an 80 per cent tax credit to aggregate producers in Northern Ireland who meet the required conditions.
Tobacco smuggling in the post
As a consequence of increased postal smuggling Customs are to be given wider powers to tackle postal tobacco smuggling.
Climate change levy
Suppliers of taxable commodities and others liable to account for the climate change levy are to be subject to higher levies. These increases will have effect for supplies of taxable commodities treated as taking place on or after 1 April 2011. The new rates are detailed in Budget Notice 55.
Landfill tax
The standard rate of tax that applies on or after 1 April 2011 is increased by £8 per tonne to £56 tonne (currently £40/tonne, but increasing 1 April 2010 to £48/tonne). The lower rate remains at £2.50 per tonne.
New legislation is to come into force on 1 October 2010 that determines criteria for determining the lower rate of landfill tax. Under existing rules in section 42(4) of Finance Act 1996, HM Treasury must have regard to whether material being landfilled is commonly described as inactive or inert when deciding whether or not to include it in an order that lists the materials that qualify for the lower rate of tax. These measures will be replaced with new provisions that specify that the Commissioners for HM Revenue & Customs must publish the criteria that HM Treasury use. HM Treasury will use this to determine what material is lower rated. They will also be obliged to publish revised criteria when listing in an Order the materials that qualify for the lower rate of tax, for any disposals made, or treated as made, on or after 1 October 2010.
Currently landfill site operators may claim against their annual landfill tax liability for contributions made to bodies concerned with the environment (enrolled under the Landfill Communities Fund (LCF)). Legislation will be introduced to amend the maximum credit claimable from 6 per cent to 5.5 per cent. This should have the effect of an increase to the maximum value of the LCF in line with inflation, from £72 million in 2009/10 to a potential value of £74.25 million of credit claimable for 2010/11.
Trusts and asbestos victims
Trusts established on or before 23 March 2010 that are specifically set up as part of an arrangement made by a company with its creditors to pay compensation to asbestos victims will benefit from income and capital taxes exemption.
Trustees of these trusts will be exempt from income tax, capital gains tax and inheritance tax. This measure will have effect retrospectively from 6 April 2006.