Annual Tax on Enveloped Dwellings
The annual charges for the Annual Tax on Enveloped Dwellings (ATED) will rise in line with inflation for the 2019/20 chargeable period.

Annual chargeable amounts for the 2019/20 chargeable period will be as follows (2018/19 rates shown in brackets):

– Property value £500,001 to £1 million – £3,650 (£3,600)
– Property value £1,000,001 to £2 million – £7,400 (£7,250)
– Property value £2,000,001 to £5 million – £24,800 (£24,250)
– Property value £5,000,001 to £10 million – £57,900 (£56,550)
– Property value £10,000,001 to £20 million – £116,100 (£113,400)
– Property value £20,000,0001 and over – £232,350 (£226,950)

Changes to the higher rates of Stamp Duty Land Tax for additional dwellings
The time allowed to claim back higher rates for additional dwellings where an individual sells their old home is to be extended. Currently, a successful reclaim must be made by the later of:

– 3 months from selling the old home
– a year from the filing date for the SDLT return for the new home.

Where the effective date of sale of the old home is on or after 29 October 2018, the time limit will be the later of:

– 12 months from selling the old home
– a year from the filing date for the SDLT return for the new home.

The meaning of ‘major interest’ in land for the general purpose of higher rates for additional dwellings is also to be clarified by legislation.

SDLT relief for first-time buyers extended
The existing Stamp duty land tax (SDLT) exemption for first-time buyers will be extended to shared ownership purchases. The Chancellor stated that the exemption of ‘first-time buyers’ SDLT on properties up to £300,000 will be extended to first-time buyers of shared ownership properties up to £500,000,’ adding that this ‘relief will be retrospective for anyone who has purchased property since the last Budget’. The extension will cover property sales to first-time buyers in England and Northern Ireland, but not Wales and Scotland where property taxes are devolved.

This change will apply to relevant transactions with an effective date on or after 29 October 2018, and will also be backdated to 22 November 2017 so that those eligible who have not previously claimed first-time buyers relief will be able to amend their return to claim a refund.

Stamp Duty, Stamp Duty Reserve Tax: transfers of listed securities and connected persons A new targeted market value rule is to be introduced, applicable from 29 October 2018, where listed securities are transferred to a connected company where stamp taxes on shares group relief is not available. The measure will apply where money is paid or there is nil consideration or where the consideration is other than money. In these circumstances, the transfer will be chargeable to stamp taxes on shares based on the higher of the amount or value of the consideration (if any) for the transfer or the market value of the securities.

Plastics tax
The government plans to introduce a tax on the production and import of plastic packaging from April 2022. This follows the government’s response to the call for evidence on tackling the plastic problem, which was published on 18 August 2018. Subject to consultation, this tax will apply to plastic packaging which does not contain at least 30% recycled plastic. The consultation will launch in the coming months. Any resulting legislation will be introduced in a future Finance Bill.

Carbon emissions tax
Details of a proposed carbon emissions tax have been confirmed, but the measure will take effect only if the UK leaves the EU without an agreement. If implemented, it will affect permit holders of stationary installations currently covered by the EU Emissions Trading System (EU ETS), including power generators; certain large industrial premises and manufacturers, including food processing plants; certain public sector facilities; and those small emitters and hospitals that are subject to simplified reporting arrangements.

In a ‘no deal’ scenario, the UK would cease to participate in the EU ETS from exit day. This proposal would introduce a tax on carbon dioxide emissions (and other greenhouse gas emissions on a carbon equivalent basis) produced by UK stationary installations currently in the EU ETS. The new tax will be introduced from 1 April 2019, with the first tax period ending on 31 December 2019.