12
Autumn Budget 2018
Value Added Tax (VAT)
From 1 April 2019
From
From 1 April 2018
Standard rate
20%
20%
VAT fraction
1/6
1/6
Reduced rate
5%
5%
Annual Registration Limit
£85,000
£85,000
Annual Deregistration Limit
£83,000
£83,000
VAT: treatment of vouchers The government will implement an EU Directive on the VAT treatment of vouchers to ensure that the correct amount of VAT is charged on what the customer pays, irrespective of whether payment is with a voucher or other means of payment. This measure introduces legislation providing for the VAT treatment of vouchers issued on or after 1 January 2019. It affects only vouchers for which a payment has been made and which will be used to buy something. The measure does not apply to vouchers issued before 1 January 2019, for which existing rules will continue to apply.
Duties Alcohol and tobacco duties
The duty rates will be frozen for:
y y duty rates on beer
y y duty rates on spirits and other drinks above 22% alcohol by volume (abv)
y y duty rates on still cider and perry, and lower strength sparkling cider and perry.
The duty rates on wine and made-wine at or below 22% abv, and high strength sparkling cider above 5.5% abv will rise by RPI inflation from 1 February 2019.
The duty rate on all tobacco products will continue to increase by 2% above RPI inflation. It was also announced that hand-rolling tobacco will rise by an additional 1%, to 3% above RPI inflation this year. The new tobacco duty rates will have effect from 6pm on 29 October 2018. Air Passenger Duty (APD) The long haul rates of APD for the tax year 2020/21 will increase in line with the RPI as forecast at Autumn Budget 2018. Short haul rates will not rise.
Previous plans for the Scottish government to replace APD with Air Departure Tax have been deferred, pending the resolution of issues relating to the exemption for flights departing from the Highlands and Islands.
“There is no price to pay to leave. But we must settle accounts” Michel Barnier, European Chief Negotiator
FOR ELECTRONIC USE ONLY
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