Budget headlines at-a-glance
- From 1 April 2015, the number of destination bands are going to be reduced from four to two, resulting in long haul flights being charged duty at a lower rate. For example, a family of four visiting relatives in the Caribbean or India, flying in economy class, will pay £56 less in duty.
- From 24 March 2014, beer duty will be cut by 1p a pint.
- The duty on spirits and ordinary cider will be frozen for 2014/15.
- From 24 March 2014, the duty rates for wine and sparkling cider exceeding 5.5% in strength will be increased by the rate of inflation, based on the Retail Price Index (RPI). This means an increase of 8p to the price of high strength sparkling cider and 6p to the price of a bottle of wine.
- The rate of bingo duty will be reduced in half to 10%.
- The fuel duty rise planned for this September will not happen.
- From 1 March 2015, a new 25% rate of duty will be due on the net takings from gaming machines where the charge payable for playing can exceed £5. This is expected to impact on bookmakers and casinos.
- From 6pm today, duty will rise by 2% above inflation adding 24p to the price of 20 cigarettes, 8p to the price of a pack of five small cigars, 23p to the price of a 25g pouch of hand-rolling tobacco and 13p to the price of a 25g pouch of pipe tobacco.
- Duty will continue to rise at 2% above the rate of inflation (based on RPI) for each year up to and including 2019/20.
Author: Guy Smith, Senior Tax Consultant on the ReSource Tax & VAT Consultancy Team.
E mail: firstname.lastname@example.org