Other announcements

Repeal of relief for black beer

The Government announced that it is the intention to repeal legislation that is no longer deemed relevant. It seems that one such instance concerns the production of black beer which is produced by only one producer in Yorkshire. Black beer has an original gravity of 1200 degrees or more and is a concentrated beverage made from malt and used as a mixer with lemonade, milk or in cooking. In its concentrated form, it has an alcoholic strength of 8.5% by volume. This product has previously enjoyed exemption from excise duty and that exemption is now withdrawn from 1 April 2013.

Carbon price floor

A raft of changes covering five pages was announced that affect UK generators, including combined heat and power and auto-generators, of fossil-fuel based electricity; and those supplying such generators. The measures are all introduced from 1 April 2013. Budget 2011 announced that a carbon price floor would be introduced from 1 April 2013 and today's announcements introduce further changes and announcements of rates and indicative rates through to 2016/17.

Gift Aid - Community Amateur Sports Clubs (CASCs) and Gift Aid registration

Legislation is to be introduced to ensure CASCs do not need to amend their constitutions to retain their status, to reflect new management and location conditions and to allow CASCs to make claims for repayment of tax under Gift Aid.

This is amending legislation to ensure that the CASC and Gift Aid legislation works as originally intended.

Gift Aid - Charitable Companies and CASCs

Again, amending legislation is to be introduced to put onto a statutory basis an extra statutory concession operated by HMRC to make provision for charitable companies and CASCs to make in-year claims for repayments of Gift Aid.


In common with all recent Budgets the 2012 Budget saw its fair share of anti-avoidance provisions which included the announcement of General Anti-avoidance Rules but also anti avoidance measures to counteract the following abuses:

  • Plant and machinery leasing arrangements where businesses are seeking to artificially reduce the disposal value for capital allowance computations
  • Purchases of plant and machinery from 1 April 2012 for companies and 6 April 2012 for unincorporated businesses for which there is a tax avoidance purpose
  • Sales of lessor companies where a legitimate short term tax timing benefit is converted into a permanent benefit. A new rule effective for transactions on or after 21 March 2012 will create a new ‘trigger' event which will bring deferred tax profits into charge immediately before a lessor company comes within the charge to tonnage tax.

Field allowances

Changes have been announced that impact oil and gas companies regarding the new category qualifying oil field for a field allowance. Please consult with us if you are in this industry.