Duties
Vehicle excise duty (VED) and road fuel duty
VED rates for all vehicles remain unchanged.
With effect from 1 September 2004, duty on unleaded petrol will increase by 1.51 pence per litre,
ultra-low sulphur petrol and diesel will increase by 1.92 pence per litre, whilst the duty on sulphurfree
petrol and diesel will increase by 1.42 pence per litre.
Other duties or levies
Rates of climate change levy, aggregates levy and air passenger duty remain unchanged.
Tobacco duties have been increased in line with inflation with effect from 6pm on the 17 March 2004.
Whilst excise duty rates on spirits, sparkling wine and cider are frozen, the rates on beer and still
wine have been increased in line with inflation from midnight on 21 March 2004.
The Chancellor also introduced reduced rates of duty for beer brewed by independent breweries
which produce between 30,000 and 60,000 hectolitres per year, such rates tapering from the
reduced rate presently paid at a production level of 30,000 hectolitres per year to the full standard
rate on production exceeding 60,000 hectolitres.
Stamp duty
Contrary to expectations, the rates and thresholds for stamp duty land tax remain unchanged.
With effect from the date of Royal Assent, transfers of an interest in land into a partnership, the
acquisition of an interest in a partnership where that interest includes an interest in land, and the
transfer of an interest in land out of a partnership will be brought into the scope of stamp duty land
tax.
A few amendments to stamp duty land tax have been announced to clarify points of uncertainty,
counter avoidance, extend some reliefs and reduce the compliance burden, some of which take
effect from 17 March 2004 and others from the date of Royal Assent.
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