Finance Bill — New Clause 9 — Publication of Treasury Analysis on Impact of Greater Flexibility in How People May Draw Down Pensions — 2 Jul 2014 at 14:00

Anna Soubry MP, Broxtowe voted against requiring the publication of any analysis prepared by the Treasury prior to the publication of the 2014 Budget in relation to the expected impact of proposed changes to the law on pensions aimed at giving greater flexibility to individuals in the way they draw down their pensions.

The majority of MPs voted to require the publication of any analysis prepared by the Treasury prior to the publication of the 2014 Budget in relation to the expected impact of proposed changes to the law on pensions aimed at giving greater flexibility to individuals in the way they draw down their pensions.

The proposed new clause rejected in this vote stated:

  • ‘(1) The Chancellor of the Exchequer shall, within six months of this Act receiving Royal Assent, publish and lay before the House of Commons any analysis prepared by the Treasury prior to the publication of Budget 2014 relating to the impact of changes made by sections 39 to 43 of this Act to schedules 28 and 29 to the Finance Act 2004.
  • (2) The information published under subsection (1) must include—
  • (a) any assessment made of the impact of the provision for independent face to face guidance on the 2004 Act;
  • (b) the distributional impact, by income decile of the population, of changes made by sections 39 to 43 of this Act;
  • (c) a behavioural analysis; and
  • (d) the financial risk assessment.”

The sections 39 to 43 of this Act referred to all relate to pensions and are as follows:

  • 39. Pension flexibility: drawdown[1]

This provides for an increase in the permitted pension drawdown rate from 120% to 150% an equivalent annuity, but reduced the annual amount of drawdown which makes people subject to this cap to £12,000 from £20,000

  • 40. Pension flexibility: taking low-value pension rights as lump sum[2]

This clause provides for an increase to £30,000 (up from £18,000)in the maximum total pension savings that individuals can have before they are no longer permitted to receive lump sums from their registered pension schemes under trivial commutation rule.

  • 41. Transitional provision for new standard lifetime allowance for 2014-15 etc[3]

This provides for the introduction of an additional provision relating to the transition to a new lower individual lifetime allowance for pensions savings, any excess to which is subject to the lifetime allowance charge.

  • 42. Taxable specific income: effect on pension input amount for non-UK schemes[4]

This provision seeks to correct an anomaly resulting from the way in which the employment income tax legislation interacts with the treatment of employer contributions to relevant non-UK schemes.

  • 43. Pension schemes[5]

This provision seeks to toughen regulation on schemes offering people access to their pension savings earlier than permitted by Parliament.

The schedules of the Finance Act 2004 which the above sections sought to amend to are:

  • Schedule 28 titled Registered pension schemes: authorised pensions—supplementary[7]

and

  • Schedule 29 Registered pension schemes: authorised lump sums—supplementary[8]

These set a series of rules for registered pensions schemes.

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Debate in Parliament | Source |

Party Summary

Votes by party, red entries are votes against the majority for that party.

What is Tell? '+1 tell' means that in addition one member of that party was a teller for that division lobby.

What are Boths? An MP can vote both aye and no in the same division. The boths page explains this.

What is Turnout? This is measured against the total membership of the party at the time of the vote.

PartyMajority (No)Minority (Aye)BothTurnout
Alliance0 10100.0%
Con251 (+1 tell) 0082.6%
DUP0 6075.0%
Green0 10100.0%
Independent0 1050.0%
Lab0 222 (+2 tell)086.8%
LDem44 (+1 tell) 0080.4%
PC0 2066.7%
SDLP0 2066.7%
SNP0 60100.0%
Total:295 241084.0%

Rebel Voters - sorted by party

MPs for which their vote in this division differed from the majority vote of their party. You can see all votes in this division, or every eligible MP who could have voted in this division

Sort by: Name | Constituency | Party | Vote

NameConstituencyPartyVote
no rebellions

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