News: March 2014
VAT
VAT Rates
The VAT rates and thresholds are as follows:
| From: | 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.
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