ENVIRONMENTAL MEASURES
Air Passenger Duty (APD)
APD rates will be increased from 1 February 2007. The
new rates of duty will be:
- for passengers flying to destinations in the
European Economic Area, the European Common Aviation Area, countries applying
to join the European Union, and Switzerland, £10 in the lowest class of
travel and £20 otherwise
- for passengers flying to other destinations,
£40 in the lowest class of travel and £80 otherwise.
Landlords Energy Saving Allowance (LESA)
In 2004, the LESA was introduced, which provides an
allowance of up to £1,500 for landlords who invest in cavity wall, loft,
solid wall and hot water system insulation, as well as draught proofing
insulation.
Following consultation, the government no longer intends
to reform the wear and tear allowance by making it conditional on the energy
efficiency of the property. However the government intends to extend the scope
of the existing LESA to include:
- the expansion of LESA to corporate landlords
- an extension of the scheme from 2009 to 2015
- the application of the allowance per property
rather than per building
- ensuring that even smaller properties have access
to the full allowance
- the addition of the acquisition and installation of
floor insulation as qualifying investment.
Landfill tax
The standard rate of landfill tax will be increased
from £21 per tonne to £24 per tonne from 1 April 2007. The lower
rate of tax will remain unchanged at £2 per tonne. The government will
also consider the case for steeper increases from 2008.
Road fuel
From 7 December 2006 the effective excise duty rates
for road fuels will be increased by 1.25 pence per litre.
Householders who generate their own power
Legislation will be introduced to put beyond doubt
that where private householders install microgeneration technology in their
home to generate power for their personal use, any payments they receive from
the sale of surplus power to an energy company is not subject to income
tax.
Tackling climate change
The Pre-Budget Report sets out several elements in the
government’s strategy for tackling climate change both domestically and
globally, including:
- promoting the development of a global carbon market
- taking further steps towards realising carbon
capture and storage technology
- a package of measures to encourage the development
of the biofuels market and innovative types of biofuel
- an ambition for all new homes to be zero-carbon
within a decade, with a time-limited stamp duty exemption for most new
zero-carbon homes.
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