Duties and other measures

Tobacco minimum excise tax 

The new minimum excise tax is £280.15 per 1000 cigarettes. The change took effect from 6pm on 22 November 2017.

Tobacco product duty rates 

With effect from 6pm on 22 November 2017 tobacco rate increases will apply that will see product costs increasing by 2% above RPI inflation each year until the end of the parliament. It was also announced that hand-rolling tobacco will rise by an additional 1% to 3% above RPI inflation rate.

Offshore trusts 

New anti-avoidance rules that relate to the taxation of income and gains accruing to offshore trusts are to be introduced. 

These rules mean payments from an offshore trust intended for a UK resident individual do not escape tax when they are made via an overseas beneficiary or a remittance basis user. To this effect draft legislation was published on 13 September 2017.

Minor changes have been made to the legislation, including to ensure that the onward gift rules can apply if the close family member rule applies, to clarify the position in the year of the settlor’s death and in relation to onward gifts to multiple recipients.

The changes will have effect on and after 6 April 2018.

Double taxation relief 

A measure that makes 2 changes to the double taxation relief (DTR) targeted anti-avoidance rule. 

The first change will remove the need for HMRC to give a counteraction notice before the DTR targeted anti-avoidance rule (TAAR) applies.

The second change will extend the scope of one of the categories of prescribed schemes to which the TAAR applies, to include tax payable by any connected persons.

The first change will have effect for returns with a filing date on and after 1 April 2018 and the second change will have effect for payments of foreign tax made on and after 22 November 2017.

Insurance premium tax 

From April 2018 the following rates continue to apply:

  • standard rate – 12% 
  • higher rate – 20%.

Contact us to discuss how Autumn Budget 2017 may affect you.