Finance Act 2021

Businesses are affected by the charges for waste disposal to landfill, energy use and carbon emissions.

Vehicle Excise Duty

Rates payable:

Light passenger vehicles registered before 1st April 2017 (vehicles other than higher rate diesel vehicles)

C02 emissions		Rate (£)
Exceeding g/km	Not exceeding g/km	Reduced rate (£)	Standard rate (£)
100	110	10	20
110	120	20	30
120	130	120	130
130	140	145	155
140	150	160	170
150	165	200	210
165	175	240	250
175	185	265	275
185	200	305	315
200	225	330	340
225	255	575	585
255	–	590	600

 

Graduated rates for light passenger vehicles registered on or after 1st April 2017 (vehicles other than higher rate diesel vehicles)

C02 emissions		Rate (£)
Exceeding g/km	Not exceeding g/km	Reduced rate (£)	Standard rate (£)
0	50	0	10
50	75	15	25
75	90	105	115
90	100	130	140
100	110	150	160
110	130	170	180
130	150	210	220
150	170	545	555
170	190	885	895
190	225	1335	1345
225	255	1900	1910
255	–	2235	2245

 

Higher rate diesel vehicles that do not meet Euro 6 emission standards

C02 emissions
Exceeding g/km	Not exceeding g/km	Rate (£)
0	50	25
50	75	115
75	90	140
90	100	160
100	110	180
110	130	220
130	150	555
150	170	895
170	190	1345
190	225	1910
225	255	2245
255	–	2245

 

Landfill tax

Two different rates of landfill tax exist (standard and lower), for the disposal of relevant waste made at authorised landfill sites in England and Northern Ireland. Rates for the relevant year can be found below.

Rates for disposal made on or after 1st April 2021 are:

• Landfill tax standard rate: £96.70 per tonne.
• Landfill tax reduced rate: £3.10 per tonne.

Inert or inactive waste, e.g. rocks or soil, is subject to the reduced rate.

From 1st April 2018, the landfill disposal tax replaced the UK landfill tax in Wales. For further information and rates, please see The Landfill Disposal Tax (Tax Rates) (Wales) Regulations 2018.

For landfill tax rates in Scotland, please see the Landfill Tax (Scotland) Act 2014 for further information.

Climate change levy 

Climate change levy rates that apply from 1st April 2021-2023

Taxable commodity supplied	Rate at which levy if supply is not a reduced-rate supply
Electricity	£0.00775 per kilowatt hour
Gas supplied by a gas utility or any gas supplied in a gaseous state that is of a kind supplied by a gas utility	£0.00568 per kilowatt hour
Any petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state	£0.02175 per kilogram
Any other taxable commodity	£0.04449 per kilogram

 

Climate change levy rates that apply from 1st April 202​​​3

Taxable commodity supplied	Rate at which levy if supply is not a reduced-rate supply
Electricity	£0.00755 per kilowatt hour
Gas supplied by a gas utility or any gas supplied in a gaseous state that is of a kind supplied by a gas utility	£0.00672 per kilowatt hour
Any petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state	£0.02175 per kilogram
Any other taxable commodity	£0.05258 per kilogram

 

Aggregate levy

Aggregate levy is a tax on sand, gravel and rock that has either been:

• dug from the ground;
• dredged from the sea in UK waters;or
• imported.

If your business exploits aggregate in the UK (i.e. a quarry operator), you must tell HMRC how much aggregate you have produced or sold.

Certain materials are excluded from the tax. A full list of exempted materials can be found here.

The current levy is £2.00 per tonne for sand, gravel or rock.

Carbon emissions tax

The carbon emissions tax is repealed as the UK did not leave the EU in a ‘no-deal’ scenario and is therefore not required.

Plastic packaging tax

Part 2 of the Act introduced a plastic packaging tax which will be payable from 1st April 2022. For more information relating to the tax see Finance Act 2021 Part 2