Legislation will be introduced to increase the appropriate percentage for company cars emitting more than 75g of carbon dioxide per kilometre by one percentage point to a maximum of 35 per cent in 2014-15.
In both 2015-16 and 2016-17, the appropriate percentages of the list price subject to tax will increase by two percentage points, to a maximum of 37 per cent.
From April 2016, the Government will remove the three percentage point diesel supplement so that diesel cars will be subject to the same level of tax as petrol cars.
From April 2015, the five year exemption for zero carbon cars and the lower rate for ultra low emission cars will come to an end.
CIPP comment: These reductions were expected reflecting the fact that new cars are becoming more efficient and so the average level of CO2 emissions is falling.
Corporation Tax Rates
Budget 2011 announced reductions to the Corporation tax rates. Budget 2012 revised these reductions, announcing that the main rate for the Financial Year beginning 1 April 2012 would drop by an extra 1% to 24 % and this is to be followed by two further annual 1% cuts to 22 per cent by the Financial Year beginning 1 April 2014.
CIPP comment: The Chancellor’s announcement means that the UK rate will be dramatically lower than its competitors which will be welcomed by business.
Pensions
Automatic Review of State Pension Age (SPA)
The Government has announced an automatic review of SPA to ensure it keeps pace with increased longevity. Further details will be published in summer 2012.
Single Tier Pension
The state pension will be increased by £5.30 next year, one of its largest increases ever. The government will also press ahead with its previously announced plan to merge the basic state pension and the state second pension into just one simple tier. At current values the full state pension will be worth £140 a week. Further detail will be published on this topic later in the year.
Tax Simplification
VAT: revalorisation of registration and deregistration thresholds
The Government has announced that the VAT registration and deregistration thresholds will be changed so that:
the taxable turnover threshold, which determines whether a person must be registered for VAT, will be increased from £73,000 to £77,000;
CIPP Policy News Journal
12/04/2013, Page 146 of 362
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