Wales Bill — New Clause 2 — Welsh Thresholds for Income Tax — 11 Jul 2016 at 20:45
The majority of MPs voted against giving the Welsh Assembly the powers to set Income Tax thresholds for Welsh taxpayers.
Income Tax thresholds include the amount of income at which a taxpayer starts paying Income Tax and set the income bands to which various rates apply.
MPs were considering the Wales Bill.
The proposed new clause rejected in this vote was titled: Welsh Thresholds for Income Tax and stated:
- (1) Part 4A of the Government Wales Act 2006 is amended as follows.
- (2) In section 116A(1)(a) (overview), after “of” insert “and thresholds for”.
- (3) After section 116D insert—
- “116DA Power to set Welsh thresholds for Welsh taxpayers
- (1) The Assembly may by resolution (a “Welsh threshold resolution”) set one or more of the following—
- (a) a Welsh threshold for the Welsh basic rate,
- (b) a Welsh threshold for the Welsh higher rate,
- (c) a Welsh threshold for the Welsh additional rate.
- (2) A Welsh threshold resolution applies—
- (a) for only one tax year, and
- (b) for the whole of that year.
- (3) A Welsh threshold resolution—
- (a) must specify the tax year for which it applies,
- (b) must be made before the start of that tax year, and
- (c) must not be made more than 12 months before the start of that year.
- (4) If a Welsh threshold resolution is cancelled before the start of the tax year for which it is to apply—
- (a) the Income Tax Acts have effect for that year as if the resolution had never been made, and
- (b) the resolution may be replaced by another Welsh threshold resolution.
- (5) The standing orders must provide that only the First Minister or a Welsh Minister appointed under section 48 may move a motion for a Welsh threshold resolution.”’
The rejected new clause was accompanied by an explanatory note stating:
- This new clause would allow the National Assembly for Wales to determine the income thresholds at which income tax is payable by Welsh taxpayers.
The question rejected by the majority of MPs in this vote was:
- That the clause be read a Second time
The impact of the vote was that the proposed New Clause did was not included in the Bill.
At the time of the vote there were unimplemented powers for the Welsh Assembly to be given powers to set the rates of Income Tax in Wales.
-  Parliament's webpage on the Wales Bill
-  Heading Welsh rates of income tax in the Wales Act 2014
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.
|Party||Majority (No)||Minority (Aye)||Both||Turnout|
|Con||273 (+2 tell)||0||0||83.3%|
|SNP||0||35 (+2 tell)||0||68.5%|