Finance Bill — Third Reading — 20 Jul 2010 at 19:10

The majority of MPs voted to approve the third reading of the Finance Bill^[1] ie. for it to be passed by the House of Commons.

The Bill contained provisions intended to enact the changes to the tax and benefits system which had been announced in the coalition's emergency budget^[2][3].

The Bill included provisions to:

• raise VAT from 17.5% to 20%
• set the main rate of Corporation Tax at 27% for 2011/12, down from 28% in 2010^[4].
• increase the standard rate of insurance premium tax (IPT) from 5 per cent to 6 per cent and the higher rate of IPT from 17.5 per cent to 20 per cent, both with effect from 4 January 2011.
• introduce the power for Treasury ministers to repeal the restriction of pension tax relief to the basic rate for high income individuals, known as the “high income excess relief charge”. The charge is a tax on pension contributions applied to individuals whose gross income is over £150,000 per year.
• maintain the exemption from income tax for accommodation expenses paid or reimbursed to MPs

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• [1] Finance Bill 2010-11
• [2] George Osborne, Chancellor of the Exchequer, House of Commons Emergency Budget Speech 22 June 2010.
• [3] June 2010 Budget Documents
• [4] HMRC tax rates

Debate in Parliament | Source |