March Budget - VAT

VAT Rates 

The VAT rates and thresholds are as follows:

1 April 2013 1 April 2014
  • Lower rate
0% 0%
Reduced rate 5% 5%
Standard rate 20% 20%
Registration turnover £79,000 £81,000
Deregistration turnover £77,000 £79,000
Acquisitions from EU member states, registration and deregistration threshold £79,000 £81,000

Changes from 2014

  • VAT treatment of prompt payment discounts given by suppliers

Changes from 2015 

The Government will consult on changes to the VAT rules in the following areas:

  • Zero-rating of work to adapt cars for use by disabled persons
  • VAT avoidance scheme disclosures
  • Reverse charge for buyers of gas and electricity - not domestic customers

Duties Stamp Duty Land Tax (SDLT) 

This duty applies to the sale of land or buildings in the UK as follows:

Effective Date Residential property Non-residential or mixed property Rate
From 22 March 2012 Up to £125,000 Up to £150,000 0
£125,001 to £250,000 £150,001 to £250,000 1
£250,001to£500,000 £250,001 to £500,000 3
*£500,001 to £1m £500,001 and over 4
*over £1m to £2m N/A 5
* over £2m N/A 7

From 20 March 2014 the residential properties in bands marked * are subject to SDLT at the rate of 15% where the property is acquired by a non-natural person such as a company, partnership or collective investment scheme. For sales in the period: 22 March 2012 to 19 March 2014 the 15% rate of SDLT only applied to properties sold for £2 million or more where the buyer was a non-natural person. 

Bingo Duty 

The percentage of bingo promotion profits paid in duty is cut from 20% to 10% with effect from 30 June 2014. 

Machine Games Duty (MGD) 

This duty was introduced from 1 February 2013, and must be collected by the owner of the premises where the game machine is provided for play. 
MGD applies at two rates: 
-5% when the fee for playing a game is not more than 20p, and -20% for other machines. 

From 1 March 2015 MGD will apply at 25% for games which may cost £5 or more to play. 

Air Passenger Duty (APD) 

This duty currently applies at three rates (reduced, standard and higher) over four bands (A, B, C & D), according to the distance travelled. 

From 1 April 2015 the bands will be reduced to two: 
-journeys up to 2000 miles -journey over 2000 miles 

The rates will also be reduced except for the higher rate which applies to aircraft with fewer than 19 seats - generally luxury jets.

Added By: Luke Noble on 20th Mar 2014 - 11:41
Number of Views: 1240
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