VAT ON SERVICES ENJOYED IN THE UK
HMRC will apply VAT ‘use and enjoyment’ provisions so that from next year, it will be clear that all UK repairs made under UK insurance contracts will be subject to VAT in the UK.
INSURANCE PREMIUM TAX
From 1 November 2015 the standard rate of insurance premium tax will increase from 6% to 9.5%.
VEHICLE EXCISE DUTY
Furchasers of cars irst registered on or after 1 April 2017 will be liable to a irst year rate, which starts at £10 for cars with emissions of 1-50 g/CO2/km to £2,000 for cars with emissions in excess of 255 g/CO2/km.
A lat standard rate of £140 will apply in all subsequent years, except for zero-emission cars, which will continue to attract a £0 rate. Cars with a list price of over £40,000 will attract a supplement of £310 per year for the irst 5 years in addition to the standard rate.
From 2020/21 all of the revenue raised from vehicle excise duty in England will be invested in England on the English Strategic Road Network.
CLIMATE CHANGE LEVY
The climate change levy (CCL) exemption will be removed for renewably sourced electricity from 1 August 2015. There will be a transitional period for suppliers, from the same date, to claim the CCL exemption on any renewable electricity generated before that date.
The 2014 legislation that suspended exemptions from the aggregates levy is to be repealed. All exemptions apart from shale will be fully restored. Once the reinstatement of exemptions comes into force on 1 August 2015, businesses will be able to claim a refund of any aggregates levy paid since 1 April 2014 (with interest) on materials for which the exemption was found to be lawful by the European Commission.