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Autumn Statement 2016: Other taxes

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This page has been archived because it is no longer current information but is still relevant, or it is current but over 12 months old
  • Publish date: 25 November 2016
  • Archived on: 01 January 2019

ICAEW Tax Faculty provides analysis of the announcements relating to tax in the 2016 Autumn Statement.

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Insurance premium tax

The standard rate of insurance premium tax (IPT) will rise from 10% to 12% from 1 June 2017.

This means that the rate of IPT will have doubled from 6% prior to November 2015.

The government states, at paragraph 4.40 of the Green Book, that IPT is “a tax on insurers”. But this is not correct: HMRC Notice IPT1: Insurance Premium Tax states at paragraph 2.1 that “IPT is a tax on premiums received under taxable insurance contracts”. It is collected by insurers on behalf of government from policy-holders and the cost of the tax, and the incidence of the tax, is likely to fall on more than 50 million policy holders.

The latest 2% increase will bring in an extra £4.2bn over the next five years but the cumulative increases since last year will bring in more than £12bn over that period.

Annual tax on enveloped dwellings

Good news for those liable to the ATED: the increase in the charge from April 2017 will be in line with inflation. This is in contrast to the increase for 2015/16 which was a 50% increase plus inflation.

Landfill tax: definition of taxable disposal

As announced at Budget 2016 and following consultation, the government will amend the definition of a taxable disposal for landfill tax purposes in Finance Bill 2017. The date of the change will appointed by order, once Finance Bill 2017 has received Royal Assent.

This will bring greater clarity and certainty for taxpayers on the landfill tax liability of activities carried out at a landfill site. The change was prompted by uncertainty about what exactly is meant by a taxable disposal. It will mean that all material disposed of at a permitted landfill site will be taxable, subject to certain exceptions.

Soft drinks industry levy

The government will publish draft legislation for the soft drinks industry levy on 5 December 2016.