LegalizeFinance Act 2009
Part 1 — Charges, rates, allowances, etc
Income tax
Charge and main rates for 2009-10
1
- (1) Income tax is charged for the tax year 2009-10.
- (2) For that tax year—
- (a) the basic rate is 20%, and
- (b) the higher rate is 40%.
Basic rate limit for 2009-10
2
- (1) For the tax year 2009-10 the amount specified in section 10(5) of ITA 2007 (basic rate limit) is replaced with “£37,400”.
- (2) Accordingly, section 21 of that Act (indexation of limits), so far as relating to the basic rate limit, does not apply for that tax year.
Personal allowance for 2009-10 for those aged under 65
3
- (1) For the tax year 2009-10 the amount specified in—
- (a) section 35 of ITA 2007, ...
- (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(personal allowance for those aged under 65) is replaced with “£6,475”.
- (2) Accordingly—
- (a) section 57 of ITA 2007, so far as relating to the amount specified in section 35 of that Act, ...
- (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(indexation) do not apply for the tax year 2009-10.
Reduction of personal allowance for those with income exceeding £100,000
4
- (1) In section 35 of ITA 2007 (personal allowances for those aged under 65), the existing provision becomes subsection (1) of that section; and after that subsection insert—
(2) For an individual whose adjusted net income exceeds £100,000, the allowance under subsection (1) is reduced by one-half of the excess. (3) If the amount of any allowance that remains after the operation of subsection (2) would otherwise not be a multiple of £1, it is to be rounded up to the nearest amount which is a multiple of £1. (4) For the meaning of “adjusted net income” see section 58.
- (2) In sections 36(2)(b) and 37(2)(b) of ITA 2007 (limit on reduction of personal allowances for those aged 65 to 74 or 75 and over), for “the amount of a personal allowance under section 35” substitute “ the amount of any allowance to which the individual would be entitled under section 35 if under the age of 65 throughout the tax year ”.
- (3) In section 57(1)(a) and (3)(a) of ITA 2007 (indexation of allowances), for “35” substitute “ 35(1) ”.
- (4) The amendments made by subsections (1) and (2) have effect for the tax year 2010-11 and subsequent tax years.
- (5) The amendment made by subsection (3) has effect for finding allowances for the tax year 2011-12 and subsequent tax years.
Abolition of personal reliefs for non-residents
5
Schedule 1 contains provision abolishing personal reliefs for non-residents.
Additional rate, dividend additional rate, trust rates and pension tax rates
6
- (1) Section 6 of ITA 2007 (rates of income tax) is amended as follows.
- (2) In subsection (1), omit the “and” at the end of paragraph (b) and insert at the end
, and (d) the additional rate.
- (3) In subsection (3)(b), for “and dividend upper rate” substitute “ , dividend upper rate and dividend additional rate ”.
- (4) In section 9 (trust rate and dividend trust rate)—
- (a) in subsection (1), for “40%” substitute “ 50% ”, and
- (b) in subsection (2), for “32.5%” substitute “ 42.5% ”.
- (5) Schedule 2 contains provision supplementing this section (including provision about rates under Part 4 of FA 2004).
- (6) The amendments made by this section have effect for the tax year 2010-11 and subsequent tax years.
Corporation tax
VAT exemption for gaming participation fees
7
- (1) Corporation tax is charged for the financial year 2010.
- (2) For that year the rate of corporation tax is—
- (a) 28% on profits of companies other than ring fence profits, and
- (b) 30% on ring fence profits of companies.
- (3) In subsection (2) “ring fence profits” has the meaning given by section 276 of CTA 2010.
Gaming duty
8
- (1) For the financial year 2009 the small companies' rate is—
- (a) 21% on profits of companies other than ring fence profits, and
- (b) 19% on ring fence profits of companies.
- (2) For the financial year 2009 the fraction mentioned in section 13(2) of ICTA is—
- (a) 7/400ths in relation to profits of companies other than ring fence profits (“the standard fraction”), and
- (b) 11/400ths in relation to ring fence profits of companies (“the ring fence fraction”).
- (3) See section 7(3) of FA 2008 for provision applying section 3(3) to (7) of FA 2007 in relation to profits for an accounting period any part of which falls in the financial year 2009.
- (4) In this section “ring fence profits” has the meaning given by section 276 of CTA 2010.
Value added tax
Extension of reduced standard rate and anti-avoidance provision
9
- (1) The Value Added Tax (Change of Rate) Order 2008 (S.I. 2008/3020) (reducing standard rate of value added tax to 15 per cent) is to cease to be in force on 1 January 2010 (rather than ceasing to be in force on 1 December 2009 in accordance with section 2(2) of VATA 1994).
- (2) Schedule 3 contains—
- (a) provision for a supplementary charge to value added tax on supplies spanning the date of the VAT change (see Parts 1 to 5), and
- (b) minor amendments of provisions about orders changing the standard rate of value added tax (see Part 6).
Stamp duty land tax
Thresholds for residential property
10
- (1) Part 4 of FA 2003 (stamp duty land tax) has effect in relation to transactions with an effective date on or after 22 April 2009 but before 1 January 2010 as if—
- (a) in section 55(2) (amount of tax chargeable: general), in Table A (bands and percentages for residential property), for “£125,000” (in both places) there were substituted “ £175,000 ”, and
- (b) in paragraph 2(3) of Schedule 5 (amount of tax chargeable: rent), in Table A (bands and percentages for residential property), for “£125,000” (in both places) there were substituted “ £175,000 ”.
- (2) The following are revoked—
- (a) the Stamp Duty Land Tax (Variation of Part 4 of the Finance Act 2003) Regulations 2008 (S.I. 2008/2338), and
- (b) the Stamp Duty Land Tax (Exemption of Certain Acquisitions of Residential Property) Regulations 2008 (S.I. 2008/2339).
- (3) The revocations made by subsection (2) have effect in relation to transactions with an effective date on or after 22 April 2009.
Alcohol and tobacco duties
Rates of alcoholic liquor duty
11
- (1) ALDA 1979 is amended as follows.
- (2) In section 5 (rate of duty on spirits), for “£21.35” substitute “ £22.64 ”.
- (3) In section 36(1AA)(a) (standard rate of duty on beer), for “£14.96” substitute “ £16.47 ”.
- (4) In section 62(1A) (rates of duty on cider)—
- (a) in paragraph (a) (rate of duty per hectolitre in the case of sparkling cider of a strength exceeding 5.5 per cent), for “£188.10” substitute “ £207.20 ”,
- (b) in paragraph (b) (rate of duty per hectolitre in the case of cider of a strength exceeding 7.5 per cent which is not sparkling cider), for “£43.37” substitute “ £47.77 ”, and
- (c) in paragraph (c) (rate of duty per hectolitre in any other case), for “£28.90” substitute “ £31.83 ”.
- (5) For the table in Schedule 1 substitute—
| Description of wine or made-wine | Rates of duty per hectolitre |
|---|---|
| £ | |
| Wine or made-wine of a strength not exceeding 4 per cent | 65.94 |
| Wine or made-wine of a strength exceeding 4 per cent but not exceeding 5.5 per cent | 90.68 |
| Wine or made-wine of a strength exceeding 5.5 per cent but not exceeding 15 per cent and not being sparkling | 214.02 |
| Sparkling wine or sparkling made-wine of a strength exceeding 5.5 per cent but less than 8.5 per cent | 207.20 |
| Sparkling wine or sparkling made-wine of a strength of 8.5 per cent or of a strength exceeding 8.5 per cent but not exceeding 15 per cent | 274.13 |
| Wine or made-wine of a strength exceeding 15 per cent but not exceeding 22 per cent | 285.33 |
| Description of wine or made-wine | Rates of duty per litre of alcohol in wine or made-wine |
| --- | --- |
| £ | |
| Wine or made-wine of a strength exceeding 22 per cent | 22.64. |
- (6) The following are revoked—
- (a) the Alcoholic Liquor Duties (Surcharges) and Tobacco Products Duty Order 2008 (S.I. 2008/3026), so far as relating to excise duty on alcoholic liquors, and
- (b) the Alcoholic Liquor (Surcharge on Spirits Duty) Order 2008 (S.I. 2008/3062).
- (7) The amendments made by this section are treated as having come into force on 23 April 2009.
Rates of tobacco products duty
12
- (1) For the table in Schedule 1 to TPDA 1979 substitute—
| 1. Cigarettes | An amount equal to 24 per cent of the retail price plus £114.31 per thousand cigarettes |
|---|---|
| 2. Cigars | £173.13 per kilogram |
| 3. Hand-rolling tobacco | £124.45 per kilogram |
| 4. Other smoking tobacco and chewing tobacco | £76.12 per kilogram. |
- (2) The Alcoholic Liquor Duties (Surcharges) and Tobacco Products Duty Order 2008 (S.I. 2008/3026), so far as relating to excise duty on tobacco products, is revoked.
- (3) The amendments made by this section are treated as having come into force at 6 pm on 22 April 2009.
Vehicle excise duty
Rates for 2009-10
13
- (1) Schedule 1 to VERA 1994 (annual rates of duty) is amended as follows.
- (2) In paragraph 1 (general)—
- (a) in sub-paragraph (2) (vehicle not covered elsewhere in Schedule otherwise than with engine cylinder capacity not exceeding 1,549cc), for “£185” substitute “ £190 ”, and
- (b) in sub-paragraph (2A) (vehicle not covered elsewhere in Schedule with engine cylinder capacity not exceeding 1,549cc), for “£120” substitute “ £125 ”.
- (3) In paragraph 1B (graduated rates for light passenger vehicles), for the table substitute—
| CO₂ emissions figure | CO₂ emissions figure | Rate | Rate |
|---|---|---|---|
| (1) | (2) | (3) | (4) |
| Exceeding | Not exceeding | Reduced rate | Standard rate |
| g/km | g/km | £ | £ |
| 100 | 120 | 15 | 35 |
| 120 | 140 | 100 | 120 |
| 140 | 150 | 105 | 125 |
| 150 | 165 | 130 | 150 |
| 165 | 185 | 155 | 175 |
| 185 | 225 | 200 | 215 |
| 225 | 390 | 405 |
The table has effect in relation to vehicles first registered under this Act before 23 March 2006 as if— (a) in column (3), in the last row, “200” were substituted for “ 390 ”, and (b) in column (4), in the last row, “215” were substituted for “ 405 ”.
- (4) In paragraph 1J (light goods vehicles)—
- (a) in sub-paragraph (a) (vehicle which is not lower-emission van), for “£180” substitute “ £185 ”, and
- (b) in sub-paragraph (b) (lower-emission van), for “£120” substitute “ £125 ”.
- (5) The amendments made by this section have effect in relation to licences taken out on or after 1 May 2009.
Rates from April 2010
14
- (1) Schedule 1 to VERA 1994 (annual rates of duty) is amended as follows.
- (2) In paragraph 1(2) (vehicle not covered elsewhere in Schedule otherwise than with engine cylinder capacity not exceeding 1,549cc), for “£190” substitute “ £205 ”.
- (3) Paragraph 1B (graduated rates for light passenger vehicles) is amended as follows.
- (4) For “table” substitute “ tables ”.
- (5) Omit the “and” at the end of paragraph (a).
- (6) Insert at the end of paragraph (b)
and (c) whether or not the duty is payable on the first vehicle licence for the vehicle.
- (7) For the table substitute—
| CO₂ emissions figure | CO₂ emissions figure | Rate | Rate |
|---|---|---|---|
| (1) | (2) | (3) | (4) |
| Exceeding | Not exceeding | Reduced rate | Standard rate |
| g/km | g/km | £ | £ |
| 130 | 140 | 100 | 110 |
| 140 | 150 | 115 | 125 |
| 150 | 165 | 145 | 155 |
| 165 | 175 | 240 | 250 |
| 175 | 185 | 290 | 300 |
| 185 | 200 | 415 | 425 |
| 200 | 225 | 540 | 550 |
| 225 | 255 | 740 | 750 |
| 255 | 940 | 950 | |
| CO₂ emissions figure | CO₂ emissions figure | Rate | Rate |
| --- | --- | --- | --- |
| (1) | (2) | (3) | (4) |
| Exceeding | Not exceeding | Reduced rate | Standard rate |
| g/km | g/km | £ | £ |
| 100 | 110 | 10 | 20 |
| 110 | 120 | 20 | 30 |
| 120 | 130 | 80 | 90 |
| 130 | 140 | 100 | 110 |
| 140 | 150 | 115 | 125 |
| 150 | 165 | 145 | 155 |
| 165 | 175 | 170 | 180 |
| 175 | 185 | 190 | 200 |
| 185 | 200 | 225 | 235 |
| 200 | 225 | 235 | 245 |
| 225 | 255 | 415 | 425 |
| 255 | 425 | 435 |
Table 2 has effect in relation to vehicles first registered, under this Act or under the law of a country or territory outside the United Kingdom, before 23 March 2006 as if— (a) in column (3), in the last two rows, “235” were substituted for “ 415 ” and “425”, and (b) in column (4), in the last two rows, “245” were substituted for “ 425 ” and “435”.
- (8) In paragraph 1J(a) (light goods vehicle which is not lower-emission van), for “£185” substitute “ £200 ”.
- (9) Schedule 4 contains further provision about rates of vehicle excise duty etc.
- (10) The amendments made by this section have effect in relation to licences taken out on or after 1 April 2010.
Fuel duties
Rates and rebates from Spring 2009
15
- (1) HODA 1979 is amended as follows.
- (2) In section 6(1A) (main rates)—
- (a) in paragraph (a) (unleaded petrol), for “£0.5235” substitute “ £0.5419 ”,
- (b) in paragraph (aa) (aviation gasoline), for “£0.3103” substitute “ £0.3334 ”,
- (c) in paragraph (b) (light oil other than unleaded petrol or aviation gasoline), for “£0.6207” substitute “ £0.6391 ”, and
- (d) in paragraph (c) (heavy oil), for “£0.5235” substitute “ £0.5419 ”.
- (3) In section 6AA(3) (rate of duty on biodiesel), for “£0.3235” substitute “ £0.3419 ”.
- (4) In section 6AD(3) (rate of duty on bioethanol), for “£0.3235” substitute “ £0.3419 ”.
- (5) In section 8(3) (road fuel gas)—
- (a) in paragraph (a) (natural road fuel gas), for “£0.1660” substitute “ £0.1926 ”, and
- (b) in paragraph (b) (other road fuel gas), for “£0.2077” substitute “ £0.2482 ”.
- (6) In section 11(1) (rebate on heavy oil)—
- (a) in paragraph (a) (fuel oil), for “£0.0966” substitute “ £0.1 ”, and
- (b) in paragraph (b) (gas oil), for “£0.1007” substitute “ £0.1042 ”.
- (7) In section 14(1) (rebate on light oil for use as furnace fuel), for “£0.0966” substitute “ £0.1 ”.
- (8) In section 14A(2) (rebate on certain biodiesel), for “£0.1007” substitute “ £0.1042 ”.
- (9) The amendments made by subsection (2)(b) and (c) are treated as having come into force on 1 May 2009.
- (10) The other amendments made by this section are treated as having come into force on 1 April 2009.
Rates and rebates from September 2009
16
- (1) HODA 1979 is amended as follows.
- (2) In section 6(1A) (main rates)—
- (a) in paragraph (a) (unleaded petrol), for “£0.5419” substitute “ £0.5619 ”,
- (b) in paragraph (aa) (aviation gasoline), for “£0.3334” substitute “ £0.3457 ”,
- (c) in paragraph (b) (light oil other than unleaded petrol or aviation gasoline), for “£0.6391” substitute “ £0.6591 ”, and
- (d) in paragraph (c) (heavy oil), for “£0.5419” substitute “ £0.5619 ”.
- (3) In section 6AA(3) (rate of duty on biodiesel), for “£0.3419” substitute “ £0.3619 ”.
- (4) In section 6AD(3) (rate of duty on bioethanol), for “£0.3419” substitute “ £0.3619 ”.
- (5) In section 8(3) (road fuel gas)—
- (a) in paragraph (a) (natural road fuel gas), for “£0.1926” substitute “ £0.2216 ”, and
- (b) in paragraph (b) (other road fuel gas), for “£0.2482” substitute “ £0.2767 ”.
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