Duties
Insurance premium tax (IPT)
The basic rate of IPT will increase from 5% to 6% with effect from 4 January 2011. No transitional arrangements will apply so the new rate must be applied under the normal rules from that date. There are also anti-forestalling measures introduced to prevent tax avoidance. The higher rate of IPT applicable to certain classes of insurance will likewise increase from 17.5% to 20% with effect from 4 January 2011, again with anti-forestalling measures applicable.
Aviation taxation - per plane duty
The Government will explore changes to aviation tax, including switching from a per-passenger to a per-plane duty. Major changes will be subject to consultation.
Cider duty
The 10% above inflation increase in cider duty announced at the March 2010 Budget is being reversed so that cider duty increases match those of other alcohol products. However, a review of alcohol taxation due in the autumn may amend the definition of ‘cider'.
Landline duty
The landline duty, originally proposed in June 2009 and formally announced in the March 2010 Budget, will not now be applied. The intention was to charge a 50p per month duty on each landline and to fund the rollout of super-fast broadband. This will now be financed from other areas.
