Excise duties
Alcohol duties
Tobacco products
Stamp duty land tax rates and thresholds
Landline duty - new tax
Alcohol duties
Duty increases (generally 2 per cent above the rate of inflation) will apply on and after 29 March 2010 that have the effect of increasing the cost of alcohol products as follows:
36 pence on a 70cl bottle of spirits
2 pence on a pint of beer
5 pence on a litre of still cider
9 pence on a 75cl bottle of sparkling cider
10 pence on a 75cl bottle of wine or made-wine; and
12 pence on a 75cl bottle of sparkling wine.
Tobacco products
Changes in tobacco duty are announced which represent an increase in duty of 1 per cent in real terms [after taking inflation into account]. These duty changes affect the price of cigarettes, cigars, hand-rolling tobacco, other smoking tobacco and chewing tobacco.
These changes apply from 6pm on 24 March 2010.
Stamp duty land tax rates and thresholds
Two measures are announced:
1) First time buyers
No stamp duty land tax will be payable by first time buyers in respect of the purchase of residential property where the effective date (normally the date of completion) is on or after 25 March 2010 and before 25 March 2012. This is a doubling of the exemption as currently a purchase where the consideration is between £125,001 and £250,000 attracts a 1 per cent rate of stamp duty land tax. Relief from stamp duty land tax is available where the purchaser or all the purchasers have not previously acquired such property.
2) Residential property over £1 million
The existing rate of stamp duty land tax for purchases is capped at a maximum rate of 4 per cent for residential property costing £500,000 or more. After 6 April 2011 where the consideration for a purchase of residential property exceeds £1 million a rate of 5 per cent will apply.
Landline duty - new tax
A new duty of 50 pence per month per line will be introduced that is almost certainly to be passed on to the subscriber and will result in an additional £6 being added to landlines, which together with VAT will cost over £7 per annum per landline.
Bingo duty, amusement machine licence duty and gaming duty
The rate of bingo duty is to reduce from 22 per cent to 20 per cent while there are inflation linked increases in the amounts of amusement machine licence duty and gross gaming yield. These increases affect anyone who provides a gaming machine for play in the UK and includes casinos and bingo clubs.
Further announcements relating to operational aspects of some duties are included in other announcements.
