Finance Bill — Second Reading — 6 Jul 2010 at 25:56
The majority of MPs voted for the Finance Bill to be read a second time ie. for it to continue on its path towards becoming law. The bill contained the changes to the tax system, as well as provisions relating to pensions and MPs expenses, which had been announced in the coalition's emergency budget.
Those supporting a second reading were voting in support of the changes to the rates of Capital Gains Tax and Value Added Tax (VAT), and other measures, which had been announced in the budget.
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.
- 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
- To increase the capital gains tax rate from 18 to 28 per cent for those with total income and taxable gains above the higher income tax rate threshold.
. To extend the 10 per cent capital gains tax rate for entrepreneurial business activities from the first £2 million to the first £5 million of qualifying gains made over a lifetime.
Overall the capital gains tax changes were expected to collect an additional £725m in 2011/12 rising to £925m in 2014/15.
This division occurred at around 2am following nine and a half hours of debate.
-  Finance Bill - Text as of 2nd reading debate in the House of Commons on 06.07.2010
-  George Osborne, Chancellor of the Exchequer, House of Commons Emergency Budget Speech 22 June 2010.
-  June 2010 Budget Documents
-  Explanatory notes to the Bill
-  HMRC tax rates
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 (Aye)||Minority (No)||Both||Turnout|
|Con||282 (+1 tell)||0||0||92.5%|
|Lab||0||214 (+2 tell)||0||83.7%|
|LDem||50 (+1 tell)||0||0||89.5%|