WD + Co Autumn Budget Summary 2021 - Flipbook - Page 15
• extension of small producer reliefs
• simplification of the administrative regime.
In addition alcohol duties have been frozen to
Air Passenger Duty (APD)
The government will introduce a new domestic band
for APD for reduced rate and standard rate travel,
covering flights within the UK. In addition, a new
ultra-long-haul band will be introduced, covering
destinations with capitals located more than 5,500
miles from London. These changes will take effect
from 1 April 2023.
VAT on second-hand cars sold in
In a measure that will be backdated to 1 January 2021,
motor dealers in Northern Ireland will be able to
include motor vehicles sourced from Great Britain in
their second-hand margin scheme calculations. This
measure will apply should a relevant agreement be
reached with the EU.
Second-hand Motor Vehicle Export
Under this scheme, businesses that remove used
motor vehicles from Great Britain for resale in
Northern Ireland or the EU may be able to claim a
refund of VAT following export. The power will come
into effect on Royal Assent of Finance Bill 2021-22.
Legislation outlining the detail of the scheme will be
introduced in 2022.
VAT treatment of fund
A consultation will take place on options to simplify
the VAT treatment of fund management fees.
Budget documents confirm that the new late
submission and late payment penalties for VAT will
still come into effect for VAT registered businesses for
accounting periods starting on or after 1 April 2022, as
announced at Spring Budget 2021.
The government announced its plans for Freeports
in 2020. Freeports are specified geographical areas
that allow certain benefits to businesses operating
within them. The main VAT benefit is that businesses
selling goods within free zones will be able to zero-rate
their supplies. Services carried out on goods in those
zones may also be zero-rated subject to conditions.
The government will introduce an additional element
to the VAT free zone model for Freeports. This
will implement a free zone exit charge to ensure
businesses do not gain an unintended tax advantage
from the zero-rate in the free zone model. The
measure will take effect from 3 November 2021.
Plastic Packaging Tax
Legislation will be issued to ensure that the existing
legislation for the Plastic Packaging Tax operates
as intended. The tax applies to plastic packaging
produced in or imported into the UK, that does not
contain at least 30% recycled plastic. Plastic packaging
is packaging that is predominantly plastic by weight.
The tax rate will be £200 per tonne of non-compliant
plastic packaging. There will be an exemption for
businesses that manufacture or import less than ten
tonnes of plastic packaging per year. The tax will take
effect from April 2022.