Key Facts

• Red diesel is responsible for nearly 14 million tonnes of CO2 a year.
• Businesses using red diesel pay less tax, 46.81p per litre less than standard diesel used by motorists.
• Clause 98 reforms the use of red diesel in most sectors from April 2022.
• The Government granted entitlements to use red diesel for agriculture, forestry, horticulture, fish farming, rail tracks, and non-commercial heating.
• New clause 3 proposes a six-month report on the impact of clause 98's changes.
• Restrictions on red diesel usage from April 2022.
• Exemptions include agriculture, rail transport, and permanently moored houseboats.
• Further exemptions for non-commercial premises for amateur sports clubs and travelling fairs/circuses were announced recently.
• Concerns raised by the waste sector about increased recycling costs and potential increase in landfill use.
• Private pleasure craft in Northern Ireland will have to use white diesel from June this year.
• The Royal Yachting Association, British Marine, and Cruising Association are concerned about limited supply of white diesel for private boats.
• The clause consolidates changes announced in November 2020 concerning tobacco duty rates.
• Smoking costs society almost £14 billion a year in England, including £2 billion in NHS costs.
• Tobacco duty rates increase by 2% above retail price index inflation and an additional 4%-6% for hand-rolling tobacco.
• The minimum excise tax on cigarettes increases by 2%-4% above RPI inflation.
• Tougher penalties for tobacco tax evasion, including £10,000 fixed penalties and escalating fines, will be legislated in the next Finance Bill.
• Tobacco duty was increased in November 2020 via a Treasury order.
• Current smoking prevalence rate is at 13.9%, the lowest level on record.
• Public health grant has been cut by more than a fifth since 2015-16.
• ASH calls for an additional £1.2 billion to reverse cuts and invest in deprived areas.
• Clause 100 uprates VED rates in line with inflation from April 2021.
• Cars registered after April 2017 will see a £5 increase, vans by £10, and motorcyclists by £3 at most.
• Clause 101 ensures correct VED refunds for expensive cars sold or declared off-road in the last year of the supplement liability.
• The HGV road user levy is suspended from August 2021 to support hauliers during pandemic recovery efforts, saving between £76.50 and £1,200 per vehicle.
• Long-haul APD tax rates will increase by RPI for the 2022-23 tax year.
• The standard rate for all classes above economy will increase by £5, while the reduced rate for economy class increases by £2.
• Short-haul rates remain frozen in nominal terms for the 10th consecutive year, benefiting more than 75% of airline passengers.
• Clause 104 increases thresholds for gaming duty bands in line with inflation, effective from April 2021.
• Gaming duty is a banded tax paid by casinos in the UK, ranging between 15% and 50%.
• The Gambling Commission publishes annual statistics on gambling participation, spend, and gross gaming yield.
• The clause addresses revalorising gaming duty bands in line with inflation.
• DCMS has launched a review of the Gambling Act 2005, which closed at the end of March.
• The top rate of gaming duty is currently 50%.
• Climate change levy main and reduced rates are updated for years 2022-23 and 2023-24.
• Landfill tax will increase to £96.70 per tonne of standard-rated material and £3.10 per tonne of lower-rate material from April 2021.
• Provisions relating to a carbon emissions tax in Finance Acts 2019 and 2020 are repealed as they were not commenced.
• The National Audit Office criticised Treasury and HMRC for failing to consider and evaluate tax impacts on environmental targets.
• UK taxes with a positive environmental impact account for only 7% of total revenue, while those with an explicit environmental purpose account for just 0.5%.
• The landfill tax has contributed to reducing waste in landfills.