| 1970 | National contributions replaced with Traditional Own Resources and VAT Resource.
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| 1984 | UK abatement introduced.Calculated as 66 per cent of the difference between UK contributions to and receipts from EU abateable expenditure.Abateable expenditure excludes External Actions spending.The abatement is deducted from UK contributions a year in arrears. VAT call up rate increased to 1.4 per cent (commencing 1986).
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| 1988 | VAT capping introduced.Each Member State's VAT base not to exceed 55 per cent of their national GNP.GNP (now GNI) resource introduced.Shortfall in revenue from TOR and capped VAT to be made up by direct payments from Member States to the Commission according to each Member States relative GNP."Correction for UK advantage" introduced.Neutralises any benefit or cost to the UK of VAT capping and the introdution of the GNP resource.
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| 1988-92 | Own resources ceilings introduced.EU commitments appropriations and payments appropriations progressively capped at 1.3 per cent and 1.2 per cent EU GNP respectively.
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| 1992 | Commitments and payments ceilings increased to 1.335 per cent and 1.27 per cent GNP respectively.
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| 1993-99 | VAT call up rate reduced to 1.0 per cent.
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| 1995-99 | VAT cap reduced to 50 per cent of GNP.
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| 1999 | Austria, Germany, the Netherlands and Sweden to contribute only a quarter of the "normal share" towards the abatement. GNP replaced by GNI for Own Resources purposes.Commitments and payments ceilings adjusted to 1.31 per cent and 1.24 per cent of GNI accordingly.TOR collection costs (retained by Member States) increased from 10 per cent to 25 per cent.Accompanied by a correction akin to the correction for the UK advantage to neutralise any benefit of cost to the UK of the shift of financing from TOR to the GNI-based resource.Correction of "pre-accession expenditure windfall" to UK.An amount equal to pre-accession aid, which becomes allocatable expenditure when new Members accede, to be excluded from abatement calculation.
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| 2000-04 | VAT rate of call reduced from 1 per cent of the base to 0.50 per cent.
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| December 2005 Financial Perspective agreement
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| VAT reductions | VAT call up rate fixed at 0.30 per cent.Removal of the frozen rate and uniform rate calculation.Austria, Germany, the Netherlands and Sweden VAT call up rates fixed at 0.225 per cent, 0.15 per cent, 0.10 per cent and 0.10 per cent respectively.
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| GNI reductions | The Netherlands and Sweden receive annual reductions in their GNI contributions of €605 and €150 million respectively (2004 prices).
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| Abatable expenditure amended | Expenditure in new Member States progressively "disapplied" from the calculation of the abatement (except CAP direct payments, market support and EAGGF guarantee expenditure).20 per cent Dissapplication in 2009, 70 per cent in 2010 and 100 per cent in 2011 and beyond.During the period 2007-13 the additional contribution from the UK should not be higher than €10.5 billion (2004 prices) in comparison with the application of the current Own Resources system. This figure is subject to adjustment in the case of future enlargement.
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| HM TreasuryOctober 2006 |
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