Green Taxes

Gordon Faragher

gordon.faragher@kaplan.co.uk

Minor problems

Minor problems

The solution?

Green Taxes

• Air Passenger Duty

• Landfill Tax

• Aggregates Levy

• Climate Change Levy

• Road Tax

• Fuel Duty

• Capital Allowances

• Company cars

“The Green Taxes”

Air Passenger Duty

Up to 31.10.09

Economy Posh

EEA £10 £20

Non EEA £40 £80

Air Passenger Duty

1.11.09 – 31.10.10

Economy Posh

A (0 – 2,000 miles) £11 £22

B (2,001 – 4,000) £45 £90

C (4,001 – 6,000) £50 £100

D (> 6,000) £55 £110

Air Passenger Duty

1.11.10 onwards

Economy Posh

A (0 – 2,000 miles) £12 £24

B (2,001 – 4,000) £60 £120

C (4,001 – 6,000) £75 £150

D (> 6,000) £85 £170

Air Passenger Duty

To be replaced............

New duty will be a charge per plane rather than per passenger

When??

How much???

Landfill Tax

Effective from

Std rate£ per tonne

Lower rate(Inert waste)

1.4.07 £24 £2

1.4.08 £32 £2.50

1.4.09 £40 £2.50

1.4.10 £48 £2.50

Aggregates Levy

Payable on commercial exploitation in the UK of rock, sand and gravel

Levy payable at £2 per tonne

Climate Change Levy

Charged on the non domestic supply of:• electricity • natural gas• petroleum and hydrocarbon gas in a liquid state • coal and lignite • coke, and semi-coke of coal or lignite • petroleum coke

Road taxFrom 1.4.10

Band CO2 12m rate 1st year

A Up to 100 NIL NIL

B 101 – 110 £20 NIL

C 111 – 120 £30 NIL

D 121 – 130 £90 NIL

E 131 – 140 £110 £110

G 151 – 160 £155 £155

I 176 – 185 £200 £300

J 186 – 200 £235 £425

L 226 – 255 £425 £750

M > 255 £435 £950

Fuel Duty

From 1.4.10 – 57.19p per litre

Money raised

• Air Passenger Duty

• Landfill Tax

• Aggregates Levy

• Climate Change Levy

• Road Tax

• Fuel Duty

• Capital Allowances

• Company cars

•

£27bn

£6bn

£2bn

£1bn

£0.3bn

£0.7bn

First Year AllowancesFirst Year Allowances

100% FYA for energy and water efficient technology

– and energy efficient cars <110g/km CO2

Payable Enhanced CAsPayable Enhanced CAs

Possible repayment where ECAs (100% relief assets) create loss

– not cars

Trading loss for period– c/f loss for future use or– surrender element created by

ECAs for cash repayment of 19% of loss

Payable Enhanced CAs - 2Payable Enhanced CAs - 2

Maximum repayment claimable higher of:

1 PAYE/NIC liability for payment periods ending in period of claim

2 £250,000

Payable Enhanced CAs - 3Payable Enhanced CAs - 3

• Year ended 31 March 2010

– £5m ECAs claimed

– Loss £10m

• Claim £5m x 19% =£950,000

–assumed < PAYE/NIC

• Taxed on % of list price

• % depends on CO2 emissions

• Mileage irrelevant

• Penalty for diesels – add 3%

• never >35%

• Reduced if not available for period > 30 days

Company carsCompany cars

• 10% charge if emit < 120g

• 5% charge if emit < 75g

• Battery electric cars – exempt from 4/10

• Discounts for bi-fuel, hybrids and E85 fuel

Company cars – green issuesCompany cars – green issues

– Private fuel in company car

• From 6 April 2010

• Base figure for private fuel benefit rises from £16,900 to £18,000

– Electric company vans

• Exempt benefit from 6 April 2010

• 100% CA for business

Other transport issuesOther transport issues

Other transport issuesOther transport issues

Green Taxes