80 Zero-rating of leases of vehicles to recipients of disability benefits
(1) VATA 1994 is amended as follows.
(2) In Schedule 8, in Group 12 (drugs, medicines, aids for the disabled, etc), omit item 14.
(3) In consequence of the amendment made by subsection (2), in that Group—
(a) for item 15 substitute—
15 (1) The sale of a motor vehicle that had been let on hire on relevant benefit terms, where such sale constitutes the first supply of the vehicle after the end of the period of such letting.
(2) A vehicle has been let on hire on relevant benefit terms if—
(a) the letting on hire was to a disabled person in receipt of—
(i) a relevant disability benefit by virtue of entitlement to the mobility component of that benefit,
(ii) an armed forces independence payment, or
(iii) mobility supplement,
(b) the letting was for a period of not less than 3 years,
(c) the vehicle was unused at the commencement of the period of letting, and
(d) the consideration for the letting consists wholly or partly of sums paid to the lessor by a relevant authority on behalf of the lessee in respect of—
(i) the mobility component of a relevant disability benefit,
(ii) armed forces independence payment, or
(iii) mobility supplement.
(3) For the purposes of paragraph (2)—
“relevant authority” means—
the Department for Work and Pensions,
the Ministry of Defence,
the Scottish Ministers, or
the Department for Communities in Northern Ireland;
“relevant disability benefit” means—
disability living allowance,
personal independence payment,
Child Disability Payment,
Adult Disability Payment, or
Scottish Adult Disability Living Allowance.
,
(b) omit note (6), and
(c) in note (7)—
(i) in the words before paragraph (a), for “14” substitute “15”,
(ii) in paragraph (aa), for “the corresponding provision having effect in Northern Ireland” substitute “Part 5 of the Welfare Reform (Northern Ireland) Order 2015”,
(iii) in paragraph (aaa), for “disability assistance for children and young people” substitute “Child Disability Payment”,
(iv) in paragraph (aab), for “disability assistance for working age people” substitute “Adult Disability Payment”,
(v) after that paragraph insert—
(aac) “Scottish Adult Disability Living Allowance” means a category of disability assistance for adults given in accordance with regulations made under section 31 of the Social Security (Scotland) Act 2018;
, and
(vi) for paragraph (b) substitute—
(b) “mobility supplement” is a mobility supplement within the meaning of—
(i) Article 20 of the Naval, Military and Air Forces Etc. (Disablement and Death) Service Pensions Order 2006, or
(ii) Article 25A of the Personal Injuries (Civilians) Scheme 1983.
(4) In Schedule 6 (valuation: special cases), after paragraph 11A insert—
11B (1) This paragraph applies for the purposes of determining the value of a supply consisting of the letting on hire of a motor vehicle on relevant benefit terms.
(2) But this paragraph is to be ignored for the purposes of Schedule 1 (VAT registration).
(3) “Relevant benefit terms” is to be construed in accordance with paragraph (2) of item 15 in Group 12 in Schedule 8 (zero-rating).
(4) Any amount of consideration for the letting that falls within sub-paragraph (d) of that paragraph (payments of relevant benefits) is to be disregarded in determining the amount of the consideration for the purposes of calculating the value of the supply under this Act.
(5) The amendments made by this section have effect in relation to leases of motor vehicles commencing on or after—
(a) 1 July 2026, or
(b) such later date as may be appointed in regulations made (before 1 July 2026) by statutory instrument by the Treasury.
81 Insurance premium tax relief limited to adapted vehicles
(1) In Schedule 7A to FA 1994 (insurance premium tax: contracts that are not taxable), for paragraph 3 (and the italic heading before it) substitute—
Contracts relating to motor vehicles let on relevant benefit terms
3 (1) A contract falls within this paragraph if it relates only to a motor vehicle and—
(a) the vehicle is let on hire on relevant benefit terms to a person, and
(b) the supply of the vehicle to that person is zero-rated for the purposes of the Value Added Tax Act 1994 as a result of it being a supply falling within—
(i) paragraph (f) in item 2 in Group 12 in Schedule 8 to that Act, or
(ii) item 2A in that Group.
(2) “Relevant benefit terms” is to be construed in accordance with paragraph (2) of item 15 in Group 12 in Schedule 8 to the Value Added Tax Act 1994 (zero-rating).
(2) The amendment made by this section has effect in relation to contracts relating to leases of motor vehicles where the lease commences on or after—
(a) 1 July 2026, or
(b) such later date as may be appointed in regulations made (before 1 July 2026) by statutory instrument by the Treasury.
(1) In section 53 of VATA 1994 (tour operators), after subsection (3) insert—
(3A) But a person is not a tour operator if and so far as their business consists of making supplies of services consisting of the transport of passengers by private hire vehicle or taxi, unless those supplies are made in conjunction with, and are ancillary to, the making of supplies by the person consisting of—
(a) the provision of accommodation, or
(b) the transport of passengers by bus, coach, train, ship or aircraft.
(2) The amendment made by subsection (1) has effect in relation to supplies made on or after 2 January 2026.
83 Certain charitable donations not to be treated as supplies of goods
(1) Schedule 4 to VATA 1994 (matters to be treated as supply of goods or services) is amended as follows.
(2) In paragraph 5 (transfer of business goods treated as supply)—
(a) in sub-paragraph (2), at the end insert—
(c) a qualifying charitable donation.
;
(b) in sub-paragraph (2ZA), at the appropriate place insert—
“qualifying charitable donation” has the meaning given in paragraph 5A;
.
(3) After paragraph 5 insert—
5A (1) In paragraph 5 “qualifying charitable donation” means (subject to sub-paragraphs (6) and (7)) a donation of an item to a charity where—
(a) the item’s value does not exceed the applicable limit, and
(b) the donation is made—
(i) for use by the charity otherwise than in the course or furtherance of a business, or
(ii) for onward donation by the charity (whether or not to another charity).
(2) In sub-paragraph (1)(a) “the applicable limit” means—
(a) £200 where the item donated is any of the following—
(i) a household appliance;
(ii) furniture;
(iii) flooring (including carpets and rugs);
(iv) a computer;
(v) a mobile phone;
(vi) a tablet;
(b) £100 in any other case.
(3) For the purposes of sub-paragraph (1)(a) an item’s value is taken to be the lower of—
(a) the cost to the donor of acquiring or, as the case may be, producing the item, and
(b) such consideration in money as would be payable by the donor if the donor were, at the time of the donation, to purchase—
(i) an item identical in every respect (including age and condition) to the item concerned, or
(ii) where such consideration cannot be determined on the basis described in sub-paragraph (i), an item similar to and of the same age and condition as the item concerned;
but where the amount described in paragraph (a) is not known, the item’s value is taken to be the amount described in paragraph (b).
(4) Paragraph 5(2A) and (5A) (goods acquired by predecessor businesses) applies for the purposes of sub-paragraph (3).
(5) For the purposes of sub-paragraph (3) the amount of consideration in money that would be payable by the donor if they were to purchase any goods is taken to be the amount that would be so payable by the donor after the deduction of any amount included in the purchase price in respect of VAT on the supply of the goods to the donor.
(6) A donation is not a qualifying charitable donation if the item donated is any of the following—
(a) a tobacco product within the meaning of the Tobacco Products Duty Act 1979;
(b) a vaping product within the meaning of Part 4 of the Finance Act 2026;
(c) an alcohol product within the meaning of Part 2 of the Finance (No.2) Act 2023, other than one belonging to a class or description on which alcohol duty is not charged under that Part of that Act.
(7) A donation is not a qualifying charitable donation if (disregarding this paragraph) it is a zero-rated supply.
(8) The Treasury may by order amend this paragraph for the purpose of varying the definition of “the applicable limit” in sub-paragraph (2).
(4) The amendments made by subsections (1) to (3) have effect in relation to donations made on or after 1 April 2026.
(1) In section 33 of VATA 1994 (refunds of VAT in certain cases), in subsection (3)(a) (which provides for the section to apply to local authorities and combined authorities), for the words from “and” to the end substitute “, a combined authority established by an order made under section 103(1) of the Local Democracy, Economic Development and Construction Act 2009 and a combined county authority established by regulations made under section 9(1) of the Levelling-up and Regeneration Act 2023;”.
(2) The amendment made by this section has effect in relation to supplies made, and importations or acquisitions taking place, on or after 1 December 2025.
(1) After section 89B of FA 1986 (stamp duty reserve tax) insert—
Section 87: UK listing relief
89C (1) Section 87 does not apply as regards an agreement to transfer chargeable securities in a listed company—
(a) that was first listed after the beginning of the period of 3 years ending with the relevant day, and
(b) whose shares are admitted to trading on a UK regulated market,
if none of the following exclusions apply.
(2) Exclusion A (listed company mergers) applies if the listing referred to in subsection (1)(a) was connected to arrangements by which—
(a) a listed company took control of another listed company,
(b) a company took control of two or more listed companies, or
(c) two or more listed companies merged all or substantially all of their businesses.
(3) Exclusion B (new holding company) applies if—
(a) the listing referred to in subsection (1)(a) was connected to arrangements by which the company took control of another company, and
(b) immediately before those arrangements, the other company was—
(i) listed other than by reference to depositary interests, and
(ii) controlled by the person or persons who, at the time of the listing referred to in subsection (1)(a), controlled the company.
(4) Exclusion C (change of control) applies if—
(a) during the period beginning with the listing referred to in subsection (1)(a) and ending with the relevant day, there was a change of control in the company, or
(b) the agreement to transfer forms part of arrangements changing control in the company.
(5) In subsection (1)(a), the reference to a company being first listed is a reference to—
(a) in the case of a company falling within subsection (6), the company first making a regulatory announcement to the effect that it has taken control of a company as described in subsection (6)(b), or
(b) in other cases, shares in the company being admitted to the official list at a time when no other shares of the company were included in the official list.
(6) A company falls within this subsection if—
(a) shares in the company were admitted to the official list at a time when the company’s assets consisted wholly or mainly of cash or short-dated securities, and
(b) the shares were admitted with a view to the company taking control of an unlisted company before the end of a certain period.
(7) In this section—
(a) a reference to a company being listed is a reference to shares in the company being included in the official list;
(b) a reference to shares being included in the official list is a reference to shares—
(i) being included in the official list in accordance with Part 6 of the Financial Services and Markets Act 2000 (“FSMA”) (see section 74 of that Act), or
(ii) not being included only by reason of suspension under that Part;
(c) a reference to shares being admitted to the official list has the same meaning as in that Part;
(d) a reference to shares includes a reference to depositary interests in shares.
(8) In this section—
“arrangements” includes any preliminary steps taken in connection with arrangements;
“control” has the meaning given in section 1124 of the Corporation Tax Act 2010;
“depositary interest” has the meaning given in regulations made under section 119 of the Finance Act 1999 (power to exempt UK depositary interests in foreign securities);
“regulatory announcement” means an announcement required by, and made in accordance with, Part 6 rules made under section 73A of FSMA;
“relevant day” has the meaning given in section 87(3);
“UK regulated market” has the same meaning as in Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments (see Article 2(13A)).
(2) The amendment made by subsection (1) has effect in relation to an agreement to transfer chargeable securities in a company that is first listed on or after 27 November 2025 (with “first listed” having the same meaning as in section 89C(1)(a) of FA 1986, as inserted by subsection (1)).
(1) In Chapter 3 of Part 3 of FA 2014 (remote gaming duty), in section 155(3) (which specifies the rate), for “21%” substitute “40%”.
(2) The amendment made by this section has effect in relation to accounting periods beginning on or after 1 April 2026.
(3) In a case where an accounting period (a “straddling period”) begins before 1 April 2026 and ends on or after that date—
(a) so much of the straddling period as falls before 1 April 2026, and
(b) so much of it as falls on or after that date,
are to be treated as separate accounting periods for the purpose of calculating the duty concerned for the straddling period.
(4) For the purposes of subsection (3), the amount on which duty is charged is apportioned to those separate accounting periods on a time basis according to the respective lengths of those periods.
(1) Chapter 1 of Part 3 of FA 2014 (general betting duty) is amended as follows.
(2) In the cross-heading after section 125, after “General” insert “, remote”.
(3) In section 126 (meaning of “general bet”), in subsection (1) after paragraph (a) insert—
(aa) it is not a remote bet,
.
(4) After 127 (general bets) insert—
General betting duty charge on remote bets
127A (1) General betting duty is charged on a remote bet made with a bookmaker.
(2) It is charged at the rate of 25% of the bookmaker’s profits on remote bets for an accounting period.
(3) The bookmaker’s profits on remote bets for an accounting period are the aggregate of—
(a) the amount of the bookmaker’s ordinary profits for the period in respect of remote bets (calculated in accordance with section 131), and
(b) the amount of the bookmaker’s retained winnings profits for the period in respect of remote bets (calculated in accordance with section 132).
(4) Where the calculation for an accounting period under subsection (3) produces a negative amount—
(a) the bookmaker’s profits on remote bets for the accounting period are treated as nil, and
(b) the amount produced by the calculation may be carried forward in reduction of the bookmaker’s profits on remote bets for one or more later accounting periods.
(5) A bet is a remote bet for the purposes of this Part if—
(a) it is made using remote communication,
(b) it is not an on-course bet, a spread bet or made by way of pool betting,
(c) it is not made using a self-service betting terminal, and
(d) condition B or C in section 126 is met in relation to it.
(6) The reference here to “remote communication” is to communication using—
(a) the internet,
(b) telephone,
(c) television,
(d) radio, or
(e) any other kind of electronic or other technology for facilitating communication.
(7) A bet is to be treated as not being a remote bet for the purposes of this Part if it is made wholly in relation to horse racing taking place in the United Kingdom.
(8) In this section, “self-service betting terminal” means a machine which—
(a) is designed or adapted for use to bet on future real events,
(b) is not a gaming machine (within the meaning of section 235 of the Gambling Act 2005), and
(c) is located on premises in respect of which there is a betting premises licence (within the meaning of section 150(1)(e) of the Gambling Act 2005) or a bookmaking office licence (within the meaning of Article 2(2) of the Betting, Gaming, Lotteries and Amusements (Northern Ireland) Order 1985 (S.I. 1985/1204)).
(9) The Treasury may by regulations amend subsection (6).
(5) In section 190 of FA 2014 (index of defined expressions), in the Table, after the entry for “registrable person” insert—
remote bet | section 127A
.
(6) In section 194(4) of FA 2014 (made affirmative procedure for regulations), before paragraph (za) insert—
(zza) regulations under section 127A(9) which have the effect of adding to the class of bets falling with the definition of “remote bet”;
.
(7) This section has effect in relation to accounting periods beginning on or after 1 April 2027, and the charge under section 127A of FA 2014 is on bets made on or after that date.
(8) In a case where an accounting period (a “straddling period”) begins before 1 April 2027 and ends on or after that date—
(a) so much of the straddling period as falls before 1 April 2027, and
(b) so much of it as falls on or after that date,
are to be treated as separate accounting periods for the purpose of calculating the duty concerned for the straddling period.
(9) For the purposes of subsection (8), the amount on which duty is charged is apportioned to those separate accounting periods on a time basis according to the respective lengths of those periods.
(1) Omit—
(a) sections 17 to 20C and 31 of the Betting and Gaming Duties Act 1981 (bingo duty);
(b) the cross-heading before section 17 of that Act;
(c) Schedule 3 to that Act (further provision about bingo duty).
(2) Schedule 13 makes—
(a) provision in consequence of subsection (1);
(b) transitional and saving provision.
(3) The repeals and amendments made by this section and Schedule 13 come into force on 1 April 2026.
(4) The Treasury may by regulations make such further transitional, transitory or saving provision as the Treasury consider appropriate in connection with the coming into force of those repeals and amendments.
(5) Regulations under subsection (4) are to be made by statutory instrument.
90 Rates of duty effective from 6pm on 26 November 2025
(1) In Schedule 1 to TPDA 1979 (table of rates of tobacco products duty), for the Table substitute—
TABLE
1 Cigarettes | An amount equal to the higher of— 16.5% of the retail price plus £353.50 per thousand cigarettes, or £471.93 per thousand cigarettes.
2 Cigars | £440.93 per kilogram
3 Hand-rolling tobacco | £503.80 per kilogram
4 Other smoking tobacco and chewing tobacco | £193.87 per kilogram
5 Tobacco for heating | £363.36 per kilogram
.
(2) In consequence of the provision made by subsection (1), in Schedule 2 to the Travellers’ Allowances Order 1994 (which provides in certain circumstances for a simplified calculation of excise duty on goods brought into Great Britain)—
(a) in the entry relating to cigarettes, for “£446.67” substitute “£471.93”,
(b) in the entry relating to hand rolling tobacco, for “£476.83” substitute “£503.80”,
(c) in the entry relating to other smoking tobacco and chewing tobacco, for “£183.49” substitute “£193.87”,
(d) in the entry relating to cigars, for “£417.33” substitute “£440.93”,
(e) in the entry relating to cigarillos, for “£417.33” substitute “£440.93”, and
(f) in the entry relating to tobacco for heating, for “£103.17” substitute “£109.01”.
(3) The amendments made by this section are treated as having come into force at 6pm on 26 November 2025.
(1) In Schedule 1 to TPDA 1979 (table of rates of tobacco products duty), for the Table substitute—
TABLE
1 Cigarettes | An amount equal to the higher of— 16.5% of the retail price plus £394.09 per thousand cigarettes, or £518.75 per thousand cigarettes.
2 Cigars | £508.12 per kilogram
3 Hand-rolling tobacco | £574.30 per kilogram
4 Other smoking tobacco and chewing tobacco | £248.07 per kilogram
5 Tobacco for heating | £426.47 per kilogram
.
(2) In consequence of the provision made by subsection (1), in Schedule 2 to the Travellers’ Allowances Order 1994 (which provides in certain circumstances for a simplified calculation of excise duty on goods brought into Great Britain)—
(a) in the entry relating to cigarettes, for “£471.93” substitute “£518.75”,
(b) in the entry relating to hand rolling tobacco, for “£503.80” substitute “£574.30”,
(c) in the entry relating to other smoking tobacco and chewing tobacco, for “£193.87” substitute “£248.07”,
(d) in the entry relating to cigars, for “£440.93” substitute “£508.12”,
(e) in the entry relating to cigarillos, for “£440.93” substitute “£508.12”, and
(f) in the entry relating to tobacco for heating, for “£109.01” substitute “£127.94”.
(3) The amendments made by this section come into force on 1 October 2026.
92 Vehicle excise duty for light passenger or light goods vehicles etc
(1) Schedule 1 to VERA 1994 (annual rates of vehicle excise duty) is amended as follows.
(2) In paragraph 1 (general rate)—
(a) in sub-paragraph (2) (vehicle not covered elsewhere in Schedule with engine cylinder capacity exceeding 1,549cc), for “£360” substitute “£375”, and
(b) in sub-paragraph (2A) (vehicle not covered elsewhere in Schedule with engine cylinder capacity not exceeding 1,549cc), for “£220” substitute “£230”.
(3) In paragraph 1B, for the Table substitute—
CO2 Emissions Figure
(1) | (2) | (3)
Exceeding or, in the first row, equal to or exceeding | Not exceeding | Rate
g/km | g/km | £
0 | 100 | 20
100 | 110 | 20
110 | 120 | 35
120 | 130 | 170
130 | 140 | 200
140 | 150 | 225
150 | 165 | 275
165 | 175 | 325
175 | 185 | 360
185 | 200 | 410
200 | 225 | 445
225 | 255 | 760
255 | — | 790
.
(4) In the sentence immediately following the Table in that paragraph, for the words from “as if” to the end substitute “as if, in column (3), in the last two rows, “445” were substituted for “760” and “790”.”
(5) In paragraph 1GC, for Table 1 (vehicles other than higher rate diesel vehicles) substitute—
CO2 Emissions Figure
(1) | (2) | (3)
Exceeding or, in the first row, equal to | Not exceeding | Rate
g/km | g/km | £
0 | 0 | 10
0 | 50 | 115
50 | 75 | 135
75 | 90 | 280
90 | 100 | 365
100 | 110 | 405
110 | 130 | 455
130 | 150 | 560
150 | 170 | 1410
170 | 190 | 2270
190 | 225 | 3420
225 | 255 | 4850
255 | — | 5690
.
(6) In that paragraph, for Table 2 (higher rate diesel vehicles) substitute—
CO2 Emissions Figure | Rate
(1) | (2) | (3)
Exceeding or, in the first row, equal to or exceeding | Not exceeding | Rate
g/km | g/km | £
0 | 50 | 135
50 | 75 | 280
75 | 90 | 365
90 | 100 | 405
100 | 110 | 455
110 | 130 | 560
130 | 150 | 1410
150 | 170 | 2270
170 | 190 | 3420
190 | 225 | 4850
225 | 255 | 5690
255 | — | 5690
.
(7) In paragraph 1GD(1)(rates for any other licence for light passenger vehicles registered on or after 1 April 2017), for “£195” substitute “£200”.
(8) In paragraph 1GE(2) (rates for light passenger vehicles registered on or after 1 April 2017 with a price exceeding £40,000), for “£620” substitute “£640”.
(9) In paragraph 1J(a) (rates for light goods vehicles that are not pre-2007 or post-2008 lower emission vans), for “£345” substitute “£360”.
(10) In paragraph 2(1) (rates for motorcycles)—
(a) in paragraph (a) (engine cylinder capacity not exceeding 150cc), for “£26” substitute “£27”,
(b) in paragraph (b) (motorbicycles with engine cylinder capacity exceeding 150cc but not exceeding 400cc), for “£57” substitute “£59”,
(c) in paragraph (c) (motorbicycles with engine cylinder capacity exceeding 400cc but not exceeding 600cc), for “£87” substitute “£90”, and
(d) in paragraph (d) (other cases), for “£121” substitute “£125”.
(11) The amendments made by this section have effect in relation to licences taken out on or after 1 April 2026.
95 Vehicle excise duty for vehicles with exceptional loads etc
(1) In—
(a) paragraph 6(2A)(a) of Schedule 1 to VERA 1994 (vehicles with exceptional loads),
(b) paragraph 9(3) of that Schedule (rigid goods vehicle which has weight exceeding 44,000 kg and is not an island goods vehicle), and
(c) paragraph 11(3) of that Schedule (tractive unit vehicle which has weight exceeding 44,000 kg and is not an island goods vehicle),
for “£1,643” substitute “£1,703”.
(2) The amendments made by this section have effect in relation to licences taken out on or after 1 April 2026.
96 Vehicle excise duty for haulage vehicles other than showman’s vehicles
(1) In paragraph 7(3A) of Schedule 1 to VERA 1994 (which specifies the rate applicable to haulage vehicles other than showman’s vehicles), for £365” substitute “£380”.
(2) The amendment made by this section has effect in relation to licences taken out on or after 1 April 2026.
(1) In paragraph 1GE of Schedule 1 to VERA 1994 (rates for light passenger vehicles registered on or after 1 April 2017 with a price exceeding £40,000)—
(a) in sub-paragraph (1)(a), for “£40,000” substitute “the applicable amount”, and
(b) after sub-paragraph (1) insert—
(1A) For the purposes of sub-paragraph (1) “the applicable amount” is—
(a) in the case of a vehicle whose applicable CO2 emissions figure in grams per kilometre driven is zero, £50,000, and
(b) in any other case, £40,000.
(2) The amendments made by this section have effect in relation to any licence where the period for which the licence has effect begins on or after 1 April 2026 (whenever the licence is taken out).
(1) Schedule 1 to the HGV Road User Levy Act 2013 (rates of the levy) is amended as follows.
(2) In paragraph 5, for Table 1 substitute—
TABLE 1: VEHICLES MEETING EURO 6 EMISSIONS STANDARDS — RATES FOR EACH BAND
Band | Daily rate | Weekly rate | Monthly rate | Half-yearly rate | Yearly rate
A | £3.22 | £8.05 | £16.10 | £96.60 | £161
B | £7.74 | £19.35 | £38.70 | £232.20 | £387
C | £9.67 | £30.95 | £61.90 | £371.40 | £619
.
(3) In paragraph 5, for Table 1A substitute—
TABLE 1A: VEHICLES NOT MEETING EURO 6 EMISSIONS STANDARDS — RATES FOR EACH BAND
Band | Daily rate | Weekly rate | Monthly rate | Half-yearly rate | Yearly rate
A | £4.18 | £10.45 | £20.90 | £125.40 | £209
B | £10.06 | £25.15 | £50.30 | £301.80 | £503
C | £10.74 | £40.20 | £80.40 | £482.40 | £804
.
(4) The amendments made by this section come into force on 1 April 2026.
(1) Section 30 of FA 1994 (air passenger duty: rates) is amended as follows.
(2) In subsection (1B) (journeys ending in the United Kingdom)—
(a) in paragraph (a), for “£8” substitute “£8.26”, and
(b) in paragraph (b), for “£16” substitute “£16.52”.
(3) In subsection (2) (short-haul journeys)—
(a) in paragraph (a), for “£15” substitute “£15.49”, and
(b) in paragraph (b), for “£32” substitute “£33.04”.
(4) In subsection (2A) (long-haul journeys)—
(a) in paragraph (a), for “£102” substitute “£105.33”, and
(b) in paragraph (b), for “£244” substitute “£251.95”.
(5) In subsection (4A) (ultra-long haul journeys)—
(a) in paragraph (a), for “£106” substitute “£109.46”, and
(b) in paragraph (b), for “£253” substitute “£261.25”.
(6) In subsection (4E) (journeys on aircraft equipped to carry fewer than 19 passengers)—
(a) in paragraph (za), for “£142” substitute “£146.63”,
(b) in paragraph (a), for “£142” substitute “£146.63”,
(c) in paragraph (aa), for “£1,097” substitute “£1132.76”, and
(d) in paragraph (d), for “£1,141” substitute “£1178.20”.
(7) The amendments made by this section have effect in relation to the carriage of passengers beginning on or after 1 April 2027.
(1) In paragraph 42(1) of Schedule 6 to FA 2000 (climate change levy: amount payable by way of levy), for the table substitute—
TABLE
Taxable commodity supplied | Rate at which levy payable if supply is not a reduced-rate supply
Electricity | £0.00827 per kilowatt hour
Gas supplied by a gas utility or any gas supplied in a gaseous state that is of a kind supplied by a gas utility | £0.00827 per kilowatt hour
Any petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state | £0.02175 per kilogram
Any other taxable commodity | £0.06468 per kilogram
.
(2) The amendment made by this section has effect in relation to supplies treated as taking place on or after 1 April 2027.
(1) Section 42 of FA 1996 (amount of landfill tax) is amended as follows.
(2) In subsection (1)(a) (standard rate), for “£126.15” substitute “£130.75”.
(3) In subsection (2) (reduced rate for certain disposals), in the words after paragraph (b)—
(a) for “£126.15” substitute “£130.75”, and
(b) for “£4.05” substitute “£8.65”.
(4) The amendments made by this section have effect in relation to disposals made (or treated as made) on or after 1 April 2026.
(1) In section 16(4) of FA 2001 (rate of aggregates levy), for “£2.08” substitute “£2.16”.
(2) The amendment made by this section has effect in relation to aggregate subjected to commercial exploitation on or after 1 April 2026.
(1) In section 45(1) of FA 2021 (rate of plastic packaging tax), for “£223.69” substitute “£228.82”.
(2) The amendment made by this section has effect in relation to packaging components produced in, or imported into, the United Kingdom on or after 1 April 2026.
(1) Part 2 of FA 2021 (plastic packaging tax) is amended as follows.
(2) In section 47(1)(a) (chargeable plastic packaging components)—
(a) before “proportion” insert “combined”;
(b) after “recycled plastic” insert “and attributed recycled plastic”.
(3) In section 49 (meaning of “plastic” and “recycled plastic”)—
(a) in the heading, for “and “recycled plastic”” substitute “, “recycled plastic” and “attributed recycled plastic””;
(b) after subsection (2) insert—
(2A) “Attributed recycled plastic” is plastic to which recovered material has been attributed in accordance with a chemical recycling certification scheme.
;
(c) after subsection (7) insert—
(7A) Plastic is not to be taken as attributed recycled plastic unless it is shown that it is attributed recycled plastic.
;
(d) in subsection (8), for “and “recycled plastic”” substitute “, “recycled plastic” and “attributed recycled plastic””;
(e) in subsection (10), after “recycled plastic” insert “or attributed recycled plastic”.
(4) After section 49 insert—
Meaning of “chemical recycling certification scheme”
49A (1) For the purposes of this Part, a scheme is a “chemical recycling certification scheme” if—
(a) it is a scheme under which a certified person produces plastic from recovered material and other material by means of one or more mass balance processes,
(b) that process or (as the case may be) at least one of those processes alters the chemical structure of the recovered material, and
(c) the scheme meets such conditions as may be specified in regulations made by the Commissioners.
(2) A “mass balance process” is a process under which—
(a) qualifying input material is added to other material to form a mixture (“the mixture”),
(b) the mixture is processed, and
(c) a certified person attributes recovered material to—
(i) material withdrawn from the mixture after the processing, and
(ii) any waste material.
(3) The certified person may attribute recovered material under subsection (2)(c) in any way, provided that—
(a) the quantity of recovered material so attributed does not exceed the quantity of qualifying input material added to the mixture under subsection (2)(a),
(b) the proportion of withdrawn fuel to which recovered material is attributed is the same as the proportion of the mixture (before it is processed) that is qualifying input material, and
(c) the attribution meets such conditions as may be specified in regulations made by the Commissioners.
(4) In subsections (2) and (3) “qualifying input material” means—
(a) recovered material, or
(b) material to which recovered material has been attributed under subsection (2)(c) in connection with an earlier mass balance process.
(5) In this section—
“certified person” means a person certified under a chemical recycling certification scheme;
“consumed fuel” means fuel added to the mixture that is consumed to provide energy for the processing of the mixture;
“process losses” means material, other than consumed fuel, added to the mixture which is converted to waste products as part of the processing (and which is not withdrawn from the mixture);
“waste material” means any consumed fuel and process losses;
“withdrawn fuel” means material withdrawn from the mixture after processing that—
is fuel, or
might reasonably be expected to be reprocessed (otherwise than as part of a mass balance process) into fuel.
(6) The Commissioners may by regulations—
(a) make provision about cases in which the chemical structure of recovered material is to be regarded as having been altered, or not altered, for the purposes of subsection (1)(b);
(b) make provision about materials which are, or are not, to be regarded as withdrawn fuel for the purposes of this section.
Chemical recycling certification schemes: further conditions
49B The conditions that may be specified under section 49A(1)(c) (scheme conditions) include, in particular, conditions about—
(a) the assessment of the scheme by an accreditation body specified, or of a description specified, in the regulations;
(b) the types of material that may be used in a mass balance process under the scheme;
(c) when, and the circumstances in which, materials may be mixed together as part of a mass balance process under the scheme;
(d) the methodology that may be used as part of a mass balance process under the scheme in connection with the calculation of amounts of waste material (within the meaning of section 49A);
(e) the measurement of materials under a mass balance process under the scheme;
(f) the operation of a mass balance process under the scheme by reference to accounting periods or other periods of time;
(g) which persons are required to be certified under the scheme;
(h) the accreditation of certification bodies recognised by the scheme;
(i) the keeping and retention of records by persons under the scheme;
(j) the auditing of scheme members by certification bodies under the scheme;
(k) compliance with, and enforcement of, the scheme rules;
(l) the provision of information to HMRC and others regarding compliance by scheme members with the scheme rules.
(5) In section 83 (interpretation), at the appropriate places insert—
“attributed recycled plastic” is to be construed in accordance with section 49;
;
“chemical recycling certification scheme” is to be construed in accordance with section 49A;
.
(6) In section 84(5)(b) (regulations), for “and “recycled plastic”” substitute “, “recycled plastic” and “attributed recycled plastic””.
(1) The following come into force on the day on which this Act is passed—
(a) this section;
(b) any provision of, or amendment made by, section 105 so far as it confers a power to make regulations or relates to the exercise of such a power.
(2) The following come into force on 1 April 2027—
(a) section 105, so far as not brought into force by subsection (1)(b);
(b) section 106.
(1) In section 36(1) of FA 2017 (rates of soft drinks industry levy)—
(a) in paragraph (a) (soft drinks that meet higher sugar threshold), for “£2.59” substitute “£2.78”, and
(b) in paragraph (b) (other soft drinks), for “£1.94” substitute “£2.08”.
(2) The amendments made by this section have effect in relation to chargeable events occurring on or after 1 April 2026.
(1) Section 8 of TCTA 2018 (the customs tariff) is amended as follows.
(2) After subsection (3) insert—
(3A) The provision that the customs tariff may make under subsection (1)(c), by virtue of section 32(7), includes provision specifying different rates of import duty applicable to goods falling within a code by reference to their nature, origin or any other factor.
(3) After subsection (8) insert—
(9) Regulations under this section may amend provision made under section 9 or 10 so as to provide that the rate of import duty that applies to goods in a standard case applies in any specified case to which either of those sections applies (instead of the rate of import duty for the time being applicable by virtue of provision made under either of them).
112 Customs facilities at approved wharves and other places
(1) Section 20 of CEMA 1979 (approval of wharves) is amended as follows.
(2) In subsection (1A)—
(a) omit the “or” after paragraph (a),
(b) after paragraph (a) insert—
(aa) impose conditions, or specify conditions which may be imposed, after an approval has been granted,
.
(c) after paragraph (b) insert—
(c) specify restrictions—
(i) that apply in all cases, or
(ii) which may be imposed, in any particular case, at the time of the approval,
(d) impose restrictions, or specify restrictions which may be imposed, after an approval has been granted, or
(e) provide for the imposition of conditions or restrictions by direction made by the Commissioners.
(3) After subsection (1B) insert—
(1C) Conditions and restrictions which may be imposed by or specified in regulations under subsection (1A) include—
(a) conditions requiring the provision at the place approved under subsection (1) of specified facilities, services or infrastructure for purposes in connection with facilitating the administration, collection or enforcement of any duty of customs,
(b) conditions requiring the provision of specified facilities, services or infrastructure for such purposes otherwise than at the place approved under subsection (1), including conditions—
(i) requiring that provision at a specified place,
(ii) requiring a person to whom an approval has been, or may be, given to propose a place at which facilities, services or infrastructure are to be provided, and
(iii) requiring the agreement of the Commissioners to any proposal for the provision of facilities, services or infrastructure at a place, and
(c) conditions and restrictions as respects the movements of goods between a place approved under subsection (1) and an off-site facility.
(1D) For the purposes of subsection (1C)(a) and (b) “specified” means specified in—
(a) the regulations,
(b) an approval under subsection (1), or
(c) a direction.
(1E) For the purposes of this section and section 20A, an “off-site facility” means a place at which facilities, services or infrastructure are provided (in accordance with an approval or conditions attaching to it) other than a place approved under subsection (1).
(4) Section 20(A) of CEMA 1979 (approved wharves) is amended as follows.
(5) Renumber that section as section 20A.
(6) In subsection (1)—
(a) in paragraph (a), for “20” substitute “20(1)”, and
(b) after that paragraph insert
or
(aa) an off-site facility.
(7) In subsection (1A), after “imposed” insert “by or”.
(8) The amendments made by this section come into force on the day on which this Act is passed.
(9) But CEMA 1979 continues to have effect, for any purpose in connection with duty under section 30A(3) or 40A of TCTA 2018, as if the amendments made by this section had not been made.
(1) In section 54 of FA 2022 (charge to the levy)—
(a) in subsection (1)(b), for the words from “is” to the end substitute “is in any of the bands set out in section 55”, and
(b) in subsection (2)—
(i) in paragraph (a), for “medium” substitute “in band A” and for “£10,000” substitute “£10,200”,
(ii) in paragraph (b), for “large” substitute “in band B”,
(iii) after paragraph (b) insert—
(ba) in the case of a person whose UK revenue for the financial year is in band C, £500,000;
, and
(iv) in paragraph (c), for “very large” substitute “in band D” and for “£500,000” substitute “£1million”.
(2) In section 55 of FA 2022 (UK revenue: amount), in subsection (1)—
(a) in paragraph (a), for “medium” substitute “in band A”,
(b) in paragraph (b), for “large” substitute “in band B” and for “£1billion” substitute “£500 million”,
(c) after paragraph (b) insert—
(ba) is in band C for a financial year if the person’s UK revenue for the relevant accounting period is more than £500 million but not more than £1 billion;
, and
(d) in paragraph (c), for “very large” substitute “in band D”.
(3) In consequence of the amendments made by the preceding subsections, in section 189 of the Economic Crime and Corporate Transparency Act 2023, in subsections (3)(b)(ii) and (11) (which operate by reference to provisions amended by this section), for “large or very large” substitute “in any of bands B to D”.
(4) The amendments made by this section have effect for the financial year beginning with April 2026 and subsequent financial years.
114 Removal of time limit to claim relief under section 106(3) of FA 2013
(1) In section 106 of FA 2013 (adjustment of amount chargeable), omit subsection (6).
(2) The amendment made by this section is treated as always having been in force.
(1) An excise duty is charged on vaping products produced in, or imported into, the United Kingdom.
(2) The duty is charged at a rate of £2.20 per 10 millilitres, rounded down to the nearest penny.
(3) In this Part, “vaping products duty” means excise duty charged under this section.
(1) In this Part, “vaping product” means a liquid that—
(a) contains nicotine and either or both of glycerine and a glycol, or
(b) is intended to be vaporised by a vape,
and is not a medicinal product or a tobacco product.
(2) For the purposes of this Part—
(a) a liquid may be intended to be vaporised by a vape even if a consumer would be required to mix it with another substance before vaporising it by a vape;
(b) a reference to vaporisation includes a reference to aerosolisation;
(c) a reference to a liquid includes a reference to a liquid that has been frozen.
(1) For the purposes of this Part, a vaping product is produced if—
(a) a substance that is not duty-paid is—
(i) combined or mixed with another substance (whether or not that substance is duty-paid), or
(ii) otherwise processed, and
(b) the resulting substance is a vaping product.
(2) If a liquid that is not duty-paid is packaged, labelled or advertised so as to indicate it is intended to be vaporised by a vape, the act of packaging, labelling or advertising is to be treated, for the purposes of this Part, as producing a vaping product.
(3) In this section, a reference to a substance or liquid that is not duty-paid is a reference to a substance or liquid that—
(a) is not a vaping product, or
(b) is a vaping product on which duty has not been paid or deferred under a duty deferment arrangement.
(4) Vaping products must not be produced except in accordance with regulations under section 45 of TCTA 2018.
Vaping products duty is to be paid, and the amount chargeable is to be determined and become due, in accordance with provision made by or under—
(a) section 1 of F(No.2)A 1992 (powers to fix excise duty point);
(b) section 45 of TCTA 2018 (general power for excise duty purposes etc).
(1) The Commissioners are responsible for the collection and management of vaping products duty.
(2) For the purposes of this Part, the Commissioners may by regulations make provision—
(a) requiring vaping products to be held in duty suspense arrangements, including in premises of a kind specified in the regulations;
(b) requiring the giving of a guarantee or other security;
(c) for exceptions to sections 129 to 131 (offences);
(d) about civil penalties and forfeiture, including provision for exceptions and joint and several liability;
(e) about appeals, including provision amending FA 1994.
(1) A vaping product must be stamped in accordance with regulations made under this Part and section 45 of TCTA 2018.
(2) For the purposes of this Part, a vaping product is stamped if a duty stamp is affixed to—
(a) the vaping product, or
(b) the retail packaging of the vaping product,
and a reference to a stamp being affixed to a vaping product includes a reference to a stamp being affixed to its retail packaging.
(3) The Commissioners may by regulations make provision—
(a) requiring a stamp to be linked to a particular vaping product;
(b) specifying information to be provided to HMRC for the purpose of paragraph (a) or otherwise in connection with a stamped vaping product.
(4) In this Part, a “duty stamp” means a document issued by the Commissioners that—
(a) is designed to be affixed to a vaping product or the retail packaging of a vaping product,
(b) is uniquely identifiable, and
(c) indicates that the product to which it is affixed is liable to vaping products duty.
(1) The Commissioners must make arrangements for the issue and management of duty stamps.
(2) The Commissioners may by regulations provide for the charging of fees in connection with the issue and management of duty stamps (but such a fee may not offset any liability to vaping products duty).
(3) The Commissioners may by published notice authorise a person to act as a stamp issuer for the purposes of this Part.
(4) In this Part, “stamp issuer” means—
(a) a person authorised under subsection (3), or
(b) if no person is authorised, the Commissioners.
(1) A duty stamp may not be issued to a person who is not approved under this section.
(2) The Commissioners may approve a person if they are satisfied that the person—
(a) has a fixed place of business in the United Kingdom, and
(b) meets such other requirements as may be specified in regulations under section 45 of TCTA 2018.
(3) An approved stamp holder may not transfer a duty stamp to any person before it has been affixed to, and activated in respect of, a vaping product (in which case it may be transferred as part of the vaping product).
(4) Subsection (3) does not prevent the return of stamps to a stamp issuer.
(5) The Commissioners may by regulations make provision—
(a) about what it means to have a fixed place of business in the United Kingdom;
(b) for exceptions to subsection (3);
(c) limiting the number of duty stamps that may be issued to (or, in the case of an overseas person, in respect of) a person within a specified period;
(d) permitting or requiring duty stamps to be voided, destroyed or returned in certain circumstances, including on the expiry of a specified period.