Finance Bill — Second Reading — 16 Apr 2012 at 22:26

The majority of MPs voted in favour of the Finance Bill^[1] at its second reading, to approve the key principles of the Bill and to support it continuing on its path to becoming law.

The key provisions of the Bill^[2]:

• To provide for an income tax for 2012-13
• To set the income tax rates, at 10% for the starting rate for savings, 20% for the basic rate, 40% for the higher rate and 50% for the additional rate applying to income over £150,000
• The threashold for starting to pay the higher rate of income tax is reduced from £35,000 to £34,370
• The income tax free personal allowance for those under 65 years old is increased form £7,475 to £8,105
• Starts the process of phasing out the additional tax free personal allowance for those over 65.
• The main rate of Corporation Tax is reduced from 25 to 24%
• The small profits rate of Corporation Tax unchanged at 20%
• A new tax to recover child benefit from the highest earning individual in a couple where one member of the couple earns over £50,000 is introduced.
• To increase Air Passenger Duty

==

• [1] Parliament's webpage on the Finance Bill, now the Finance Act 2012
• [2] Explanatory notes to the Bill

Debate in Parliament | Source |