Budget 2020 – Green Taxes

In 2019, the UK Government consulted on the introduction of a new Plastic Packaging Tax (PPT), with the proposed legislation coming into force on 6 April 2022. The original proposal impacted businesses who produce or import unfilled plastic packaging with less than 30% recycled content, however within the Budget the Chancellor announced an extension to the scope of the tax to include the importation of filled plastic packaging. The rate of tax has been set at £200 per tonne of non-qualifying material with a minimum threshold of 10 tonnes. A further consultation will take place in due course to review the finer details in how the tax will operate.

The Government announced further measures in a bid to achieve the UK’s “net zero by 2050” commitment, including:

• Removal of red diesel eligibility from 2022, for all sectors except agriculture, fish farming, rail and non-commercial heating;
• Fuel duty – frozen until at least April 2021;
• Rates on supply of electricity and LPG have been frozen;
• Rates on supply of gas will increase in April 2022 and 2023;
• A pledge to plant 30,000 hectares of trees and restore peatlands and other natural habitats.

For full analysis of all the announcements in the Budget 2020, you can download our Budget Summary.

For more information or to discuss how the Budget could affect you, please contact our EQ Taxperts.