Excise Duties
Petrol and diesel duty
Increases in duty of 2p per litre previously announced as due to be implemented on 1 April 2008 have been deferred by six months to 1 October 2008. There will be a further 2p per litre on 1 April 2009 and in 2010 an increase in real terms of half pence per litre.
Duty rates changes and rates simplification
HM Revenue and Customs press release BN71 includes details of the changes to be introduced in Finance Bills 2008, 2009 and 2010 to amend the duty rates for hydrocarbon oils and reduce the number of rates for heavy oils and light oils. The simplification changes and the introduction of a rebated rate for biodiesel and bioblend will have effect from 1 April 2008 and on 1 October 2008, 1 April 2009 and 1 April 2010.
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VED rates
| Band |
CO2 emissions g/km |
Petrol |
Diesel |
Alternative fuel |
| A |
100 and below |
£0 |
£0 |
£0 |
| B |
101 - 120 |
£35 |
£35 |
£15 |
| C |
121 - 150 |
£120 |
£120 |
£100 |
| D |
151 - 165 |
£145 |
£145 |
£125 |
| E |
166 - 185 |
£170 |
£170 |
£150 |
| F |
186 - 225 |
£210 |
£210 |
£195 |
| G* |
226 and above |
£400 |
£400 |
£385 |
| * New cars registered from 23 March 2006 |
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Tobacco
With effect on and after 6pm 12 March 2008 duties will increase in line with inflation typically by:
- 11p for a pack of 20 cigarettes
- 4p for a packet of 5 cigars
- 11p for 25g of hand rolling tobacco
- 6p for 25g of pipe tobacco
These are the expected increases in retail prices as a result of the duty and VAT.
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Alcohol
In contrast to the rates for tobacco products, which have risen in line with inflation, duty rates on alcohol will increase by 6% in real terms. The impact of these changes is equivalent to the following retail increases which will apply on or after 17 March 2008:
- 55p on a 70cl bottle of spirits
- 4p on a pint of beer
- 3p on a litre of still cider
- 14p on a 75cl bottle of sparkling cider
- 14p on a 75cl of wine or made-wine; and
- 18p on a 75 cl bottle of sparkling wine
The Small Brewers Relief Scheme will continue to provide 50% duty relief to the smallest brewers.
Excise duties on alcohol will be increased by 2% above each subsequent year up to and including 2013.
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Gaming duty
The Gross Gaming Yield (CGY) bandings for casino operators increase for accounting periods starting on or after 1 April 2008 in line with inflation as follows:
| CGY duty band |
Percentage of tax |
| The first £1,911,000 of CGY |
15% |
| The next £1,317,000 of CGY |
20% |
| The next £2,307,000 of CGY |
30% |
| The next £4,869,500 of CGY |
40% |
| The remainder |
50% |
Further details are included in Excise Notice 453 (Gaming Duty)
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