Finance Bill — Clause 1 — Report on Impact of Additional Rate of Income Tax for Income Over £150,000 — 1 Jul 2013 at 17:30

The majority of MPs voted against requiring a report on the impact of changing the additional rate of income tax. At the time of the vote, during the 2013-14 tax year this was charged at a rate of 45% on income over £150,000 per year; prior to that, since its introduction in 2010-11 the rate had been 50%^[1][2]. The report the majority of MPs voted against would have reviewed the impact of both the rate cut for 2013-14 and of increasing the rate to back 50% for 2014/15.

MPs rejected a proposed new clause for the Finance Bill^[3][4] which stated:

• (1) The Chancellor of the Exchequer shall, within three months of the passing of this Act, publish a report on the additional rate of income tax.
• (2) This report shall review the impact upon Exchequer receipts of setting the additional rate to 50 per cent. in the tax year 2014-15.
• (3) The report shall review what impact reducing the additional rate for 2013-14 will have on the amount of income tax currently paid by those with taxable incomes of—
• (a) over £150,000 per year; and
• (b) over £1,000,000 per year.
• (4) The report shall review what impact reducing the additional rate for 2013-14 will have on the level of bonuses awarded in the financial sector in April 2013.’.

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• [1] Income Tax Rates and Allowances - HMRC
• [2] RATES OF INCOME TAX: 1990-91 TO 2013-14 - HMRC
• [3] Parliament's webpage on the Finance Bill (now the Finance Act 2013)
• [4] Finance Bill as introduced 28 March 2013

Debate in Parliament | Source |