• At-a-glance
• Administration Of Tax
• Personal Taxation
• Employment Taxation
• Business Tax
• Capital Allowances
• Corporation Tax
• Capital Gains Tax
• Inheritance
• Savings and Investments
  
• Pensions
  
• Charities
  
• Anti-Avoidance
  
• Stamp Taxes
• Value Added Tax
• Excise Duties
• Miscellaneous

EXCISE DUTIES

Fuel Duty Rates

The fuel duty escalator, which was introduced in 2009 and was intended to increase fuel duty each year until 2014/15, will be abolished and will be replaced by a 'fair fuel stabiliser'. This will have the effect that when oil prices are high, fuel duty will only increase by the Retail Prices Index (RPI). However, if the oil price falls below a set trigger price on a sustainable basis, the Government is committed to increasing fuel duty by RPI plus one penny per litre in each such year. The Government believes that a trigger price of $75 per barrel would be appropriate, but will set a final trigger price and mechanism after consulting with oil companies and motoring groups.

The main fuel duty rate will be reduced by one penny per litre from 18.00 on 23 March 2011. The rate will then increase by 3.02 pence per litre on 1 January 2012. The 2012/13 increase in fuel duty will be implemented on 1 August 2012, when duty on rebated oils will also rise in proportion to the main rate. The duty differential for compressed natural gas will be maintained, but the differential for liquefied petroleum gas will be reduced by the equivalent of one penny per litre.