01254 589799

Autumn Budget 2021 – Duties and Other Announcements
Autumn Budget 2021 – Duties and Other Announcements


Gaming Duty


Gross gaming yield bands for gaming duty will increase in line with the retail prices index (RPI) rate of inflation from 1 April 2022.



Red Diesel


From 1 April 2022, amendments will be made to the legislation to adjust the circumstances where use of red diesel will be allowed and will now specify the penalties that will apply, where the restrictions are contravened.



Vehicle Excise Duty (VED)


The Government has announced VED rates for cars, vans and motorcycles will increase in line with RPI from 1st of April 2022.

Rates for heavy goods vehicles will remain frozen and the HGV levy will continue to be suspended for another 12 months from 1st August 2022.

The temporary extension to road haulage cabotage will be extended until 30 April 2022.



Tobacco Duty


From 6pm on 27th October 2021, the duty rates on all tobacco products will increase by RPI plus 2%, on hand-rolling tobacco products by RPI plus 6% and the minimum excise tax to RPI plus 3% .



Duties & Other Aggregates Levy


The Government will freeze the aggregates levy rate for 2022/23 but intends to return to index-linking in future.



Fuel Duty Rates


Fuel duty rates will remain frozen for 2022/23.



Alcohol Duty Rates


Alcohol duty rates remain frozen for 2022/23, but the Government announced its proposals for reform of this tax, with the aim of simplifying an outdated system. The number of main duty rates are to be cut from 15 to six.

The duty rate applicable will now relate to a drink’s alcoholic strength rather than the type of drink – "the stronger the drink, the higher the rate".

A new draught relief will also be introduced applying a lower rate of duty on draught beer and cider, served from containers of 40 litres or over.

Proposals for a new small producer relief were also announced extending the principles of the small brewers’ relief to include small cider makers and other producers making alcoholic drinks of less than 8.5% ABV. The consultation ends on 30 January 2022 with the reforms taking effect in February 2023.



Tonnage Tax Reform


The Government announced a package of measures to reform the UK’s tonnage tax regime to come into effect in April 2022. This will include a preferential tonnage tax for a ship displaying the red ensign of the UK and remove the requirement for any ship in the regime to fly the flag of any EU country now that the UK has left the EU.



Air Passenger Duty


From 1st of April 2023, flights between home nations will be subject to a lower ‘domestic band’ air passenger duty to support UK connectivity.

A new ultra-long haul band, covering destinations with capitals located more than 5,500 miles from London, will also be introduced.

Reduced, standard and higher rates are being increased on 1 April 2022, dependent on factors such as mileage.



Need More Info?!


If you would like a more in-depth summary of the 2021 Autumn Budget, you can read our exhaustive overview here.

On the other hand, if you would like more information on a the budget and its various aspects, you can refer to our main blog page, where you will find a summary post on the 2021 Budget, as well as posts covering VAT, personal tax, and business tax.


Contact Gow and Partners


If you have any queries regarding Sunak’s Autumn Budget, then please do get in touch with our team of dedicated Gow accountants, who will be more than happy to clarify any aspect that you’re unclear on.

Simply call 01254 589799 today.

Alternatively, you can fill in a contact form, or send us an email at info@gowandpartners.co.uk.