The Institute of Indirect Taxation is concerned with a number of taxes, grouped together under the heading "indirect taxes" to distinguish them from so-called "direct taxes" such as income tax, corporation tax and capital gains tax.

Value added tax

This tax is usually known by its initials as VAT. It is charged on supplies of goods and services but the public will recognise it better as an addition to the cost of items they purchase. Broadly speaking, those in business account to HM Revenue & Customs for the VAT they charge when they sell something and reclaim the VAT they pay to those they buy from.

Difficulties arise because not all supplies are taxed at the standard rate of 17.5% (or reduced rate of 5%) – some are exempt and some are taxed at 0% (these give different rights to reclaim VAT). Cross-border supplies are also complicated.

Customs duty

Customs duty is charged on importation of goods into the UK from outside the EU (since 1993 there has been no import duty within the EU). There is a detailed list of the rates of duty, known as the Tariff. Less than straightforward areas include deciding where various items fall within the Tariff and the application of various reliefs from duty.

Excise duties

This is generally a tax on production rather than consumption, for betting, alcohol, tobacco and hydrocarbon oils. Stricter controls have been introduced to control the storage and transportation of excise goods whilst they remain in duty suspension.

Air passenger duty

APD is charged on the transport of passengers in an aircraft from the UK to Europe (at £20, with a reduced rate of £10), or the rest of the world (at £80, with a reduced rate of £40). In the March 2008 Budget it was announced that legislation would be introduced in the Finance Bill 2008 to enable HM Revenue & Customs to proceed with the development of a new duty on aviation before its introduction in November 2009, when it will replace air passenger duty.

Landfill tax

Landfill tax is a tax on the disposal of waste by way of landfill. Its aim is to encourage recycling or more environmentally friendly methods of waste disposal. Following the 2008 Budget, the standard rate of landfill tax has been increased to £32 per tonne with effect from 1 April 2008. The lower rate has also been increased, to £2.50 per tonne, effective from the same date.

Climate change levy

CCL is a single-stage sales tax on the supply to businesses and the public sector of some forms of energy, which are described as "taxable commodities". It is an environmental tax, which aims to encourage the more efficient use of energy in the non-domestic sector. It distinguishes between different forms of energy by taxing some energy products and not others. "Good" forms of energy are untaxed. In this way, CCL encourages people to switch to more environmentally friendly forms of energy. It also treats electricity (a single product) differently depending on how it was produced.

Aggregates levy

Aggregates levy is a single tax on the commercial exploitation in the UK of rock, sand and gravel (and whatever occurs or is mixed with it). With effect from 1 April 2008 the rate of aggregates levy is £1.95 per tonne.

Business rates

Business rates are chargeable on the occupation of non-domestic property - they are collected by local authorities but are paid over to central government and are not included in local authority budgets.

Stamp taxes

Stamp duty, stamp duty reserve tax and stamp duty land tax are the three stamp taxes. The first is chargeable on documents, the second on share dealings where there is no document and the third on land transactions. Stamp duty land tax replaced stamp duty on land transactions with effect from 1 December 2003.