A range of other measures also featured, included increases in certain stamp duty land tax rates from 31 October 2024.
Stamp duty land tax (SDLT)
The SDLT surcharge on acquisition of an additional dwelling increased from 3 percent to 5 percent from 31 October 2024. The 15 percent rate of SDLT that is charged on the purchase of dwellings costing more than £500,000 by corporate bodies increased by 2 percentage points to 17 percent from the same date. Those who exchanged contracts prior to 31 October 2024 are not affected by these rate increases.
Van fuel and benefit charge and car fuel benefit
Both of these will increase by the CPI from 6 April 2025.
Plastic packaging tax
To incentivise businesses to use recycled instead of new plastic in packaging, the Plastic Packaging Tax (PPT) rate for 2025/26 will increase in line with CPI inflation.
To support the use of and investment in advanced chemical recycling technologies, businesses will be permitted to use a mass balance approach to evidence recycled content in chemically recycled plastic for the PPT.
Landfill tax rates
The previously announced adjustment to landfill tax rates from 1 April 2025, which maintains the incentive to manage waste more sustainably, will be implemented in order to maintain the real-terms value of landfill tax rates.
To ensure they reflect up-to-date market and economic conditions, the Government will announce future landfill tax rates at the fiscal event immediately before, so that those applicable from 1 April 2026 will be announced at Budget 2025.
Land remediation relief
A consultation will be launched in Spring 2025 to review the effectiveness of land remediation relief and will consider whether the relief is still meeting its objectives and is good value for money.
Rollover of 2021 business tariff suspensions
Following feedback from businesses, the Government will maintain tariff-free imports to avoid unnecessary costs for UK businesses. This measure will extend, until June 2026, tariff suspensions on goods ranging from aluminium frames used by UK bicycle manufacturers to ingredients used by UK food producers.
Alternative finance tax rules
Alternative finance tax rules will be amended to put certain tax consequences of alternative and conventional financing arrangements on a level playing field. This follows a consultation on tax simplification for alternative finance which the previous Government published a summary of responses to earlier in 2024. The changes apply UK-wide from 30 October 2024 and will be legislated for in Finance Bill 2024/25.
Annual Tax on Enveloped Dwellings (ATED)
The annual chargeable amounts for the ATED will increase by the September 2024 CPI figure of 1.7 percent in 2025/2026. This will be implemented via a Treasury Order.
Private intermittent securities and capital exchange system - stamp taxes exemption
The Government is committed to delivering the private intermittent securities and capital exchange system (PISCES), a new innovative market for trading private company shares.
In line with that commitment, the Government announced that PISCES transactions will be exempt from Stamp Duty and Stamp Duty Reserve Tax. This exemption will be introduced via a similar timeline to the legislation which will establish the PISCES regulatory framework.
Energy profits levy
From 1 November 2024, the Energy Profits Levy (EPL) increased by 3 percentage points to 38 percent, the investment allowance was abolished, and the rate of the decarbonisation allowance was set at 66 percent, so that its cash value is maintained.
To provide certainty and to support a stable energy transition, the Government will make no additional changes to tax relief available within the EPL regime and the levy will end on 31 March 2030. The Government will legislate for these measures in Finance Bill 2024/25.
To support long-term stability and predictability in the oil and gas fiscal regime, the Government also plans to publish a consultation in early 2025 on how the taxation of oil and gas profits will respond to price shocks after the EPL ends. It will also continue to have regular engagement with the sector to understand the evolving context of oil and gas investment, supported by bi-annual fiscal forums.
Relief for payments made into a carbon capture usage and storage decommissioning fund
The Government will legislate in Finance Bill 2024/25 to provide relief for payments oil and gas companies make into decommissioning funds in relation to assets sold for use in carbon capture usage and storage, maintaining the tax treatment had these assets instead been decommissioned. This legislation will also remove receipts from the sale of these assets from the scope of the EPL.
Consultation on scope 3 emissions
The Government is consulting on new environmental guidance for assessing end use emissions related to oil and gas projects. This consultation seeks to provide stability for the oil and gas industry, support investment, protect jobs and ensure a fair, orderly and prosperous transition in the North Sea in line with climate and legal obligations.
Climate change levy 2026/27
The main rates of the climate change levy (CCL) for gas, electricity, and solid fuels will increase in line with the Retail Price Index in 2026/27. The main rate for liquefied petroleum gas will continue to be frozen and the reduced rates of the CCL will remain at an unchanged fixed percentage of the main rates.
Carbon price support 2026/27
Carbon price support rates in Great Britain will remain at a level equivalent to £18 per tonne of CO2 in 2026/27.
Advance tax certainty for major projects
A consultation will be launched in Spring 2025 to develop a new process that will give investors in major projects increased tax certainty in advance.
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