VAT on services used and enjoyed in the UK
The government will apply VAT ‘use and enjoyment’ provisions,
so that from next year it will be clear that all UK repairs made
under UK insurance contracts will be subject to VAT in the UK.
The government is considering a wider review of offshore-based
avoidance in VAT exempt sectors, with a view to introducing
additional use and enjoyment measures for services such as
advertising in the following year.
Insurance premium tax (IPT)
The standard rate of IPT will increase from 6% to 9.5% from
1 November 2015 for insurers using the IPT cash accounting
scheme. For insurers using the special accounting scheme,
premiums relating to policies entered into before 1 November
2015 will continue to be liable to IPT at 6% until 29 February
2016, after which all premiums received by insurers will be taxed
Vehicle excise duty (VED)
A new VED banding system will be introduced for cars registered
after 31 March 2017. First year rates will depend on the carbon
dioxide emissions of the vehicle, ranging from £0 for cars with
emissions to £2,000 for CO
emissions over 255g/km.
After the first year there will be a flat standard rate of £140 for
all cars except those with zero emissions, which will continue to
pay £0. Cars with a list price above £40,000 will attract
a supplement of £310 a year for the first five years
in which the standard rate is paid.
Company car tax rates
As announced in the March 2015 Budget, the
appropriate percentage of list price subject to
tax will increase by three percentage points
for cars emitting more than 75g/km of CO
to a maximum of 37% in 2019/20. There will
be a three percentage point differential
between the 0–50g/km and 51–75g/km
bands and between the 51–75g/km and
8 JULY 2015
Save insurance premium
– renew your cover
and pay by annual
1 November 2015.