Finance Act 2010 Explanatory Notes

Background Note

5.In Budget 2009 the Government announced that the duty rates on main road fuels would be increased on 1 April from 2010 to 2013 by 1 ppl above indexation in each year; that the effective rates of duty for non-road fuels would be increased by the same percentage as road fuels; that the duty increases on natural gas would maintain the differential with the main road fuels; and that the differential for road fuel gas other than natural gas would be reduced by the equivalent of 1 penny per litre each year.

6.Budget 2010 announced that the 2010 increase would be implemented in stages in order to ease pressure on incomes at a time when other prices are rising and that main road fuel duties would increase by 1ppl on 1 October and by 0.76ppl on 1 January 2011, with consequential effects on rebated fuels and road fuel gases.

7.Duty on leaded petrol is increased with effect from 1 October 2010 by 1ppl and with effect from 1 January 2011 by 0.76ppl.

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