The rate of duty on road fuels is increased from 7 December 2006 by an effective 1.25p per litre, in most cases. The exception is LPG, with an increase of an effective 2.25p per litre.
On 1 February 2007, the rates of duty for travel within the EU will increase. The rates for travel within the European Economic Area and certain other European countries will increase from £5 to £10 in the lowest class, and from £10 to £20 in other classes. For other destinations, the rates will increase from £20 to £40 in the lowest class, and from £40 to £80 in other classes.
The Landlord’s Energy Saving Allowance, until now available only to individuals, will also be applicable to corporate landlords from 6 April 2007. The allowance will be available up to 2015.
The expenditure which qualifies for the allowance is also to be extended, to cover floor insulation (it currently covers roof and wall insulation, draught proofing and hot water pipe insulation). The maximum allowance of £1,500 per building will in future be £1,500 per property.
The Chancellor confirmed that the Finance Bill 2007 will include legislation exempting from income tax any sums received by a householder from the sale of surplus power from microgeneration technology installed in their home.
It is proposed that new zero-carbon homes will be exempted from stamp duty from 2007. Full details are not expected to be available before Budget 2007, but it is understood the exemption will be for a limited time, to raise demand for such homes.
VAT fuel scale charge for company cars
The VAT fuel scale for company cars will, from 1 May 2007, reflect the car’s carbon dioxide emissions.
With effect from 1 April 2007, the standard rate of landfill tax will rise from £21 per tonne to £24 per tonne. Consideration is being given to raising the rate of increase and/or increasing the maximum standard rate beyond the £35 per tonne already announced.