Finance (No. 2) Bill, 1981

Public bill · Government · Introduced

The Finance (No. 2) Bill, 1981 raises taxes on beer, spirits, wine, tobacco, petrol, diesel and some vehicles, and restores annual road tax on smaller cars and motorcycles while removing or reducing certain registration charges. It increases the standard VAT rate from 10% to 15%, but keeps an effective 3% rate for building work and specified agricultural services, and temporarily protects tourism prices agreed before 1981. Small businesses get higher turnover limits before they must register for VAT, while farmers receive a higher compensation payment for sales to VAT-registered businesses. The measure also introduces a levy on banks, a £5 annual charge on credit and some charge cards, and clarifies the treatment of Government borrowing.

Last updated 10 June 2020