Duties

Stamp duty land tax

Changes to take effect on and after 1 April 2011 will provide a means of reclaiming SDLT repayments where there is no other statutory route. These measures will ensure that there is a comprehensive statutory scheme of remedies in such case. During the period up to 1 April 2011 transitional rules will apply in which claims can be made under the old rules.

Examples of the changes include:

• The time limit for claiming repayments under both provisions is currently six years. From 1 April 2011 they must be claimed within four years.
• No repayment is given where the return followed the general practice at the times it was made, or where the mistake is governed by another statutory claim.
• The measure will remove the requirement that the overpayment must be the result of a mistake in a return and that it must be made under an assessment.
• The measure will also provide that HM Revenue & Customs are not liable to repay an amount except as provided by the measure or by another provision of the Taxes Acts.
• The current restrictions on the right of appeal will be removed, allowing an appeal to the courts on the same grounds against other matters.

Alcohol, tobacco and fuel duties

There will be no rise in alcohol, tobacco or fuel duties. From the 30 June 2010, the cider duty rates will be reduced. This will reverse Labour's increase in the duty by 10 per cent above inflation.

Cigarettes longer than 8cm (excluding any filter) will be classed as 'long'. Each additional 3cm (or part thereof) is treated as an additional cigarette for the purposes of duty calculation. So, someone smoking a cigarette of 12 cm will pay duty on three cigarettes! This now ensures the UK is aligned with the relevant European Directive. The measure announced today affects manufacturers and importers of cigarettes and takes effect on and after 1 January 2011.

Aggregates levy - Northern Ireland credit scheme

A measure to take effect on and after the date of Royal Assent will allow for the extension of the Northern Ireland aggregates levy scheme for a further ten years. The scheme grants an 80 per cent tax credit to aggregate producers in Northern Ireland who meet certain conditions. The scheme was due to expire on 31 March 2011 and is now extended to 31 March 2021.

Landline duty

It was announced that the proposed landline duty will not be implemented.