Finance Bill — Clause 1 — Additional Rate of Income Tax — 2 Jul 2012 at 22:00

The majority of MPs voted to set the additional rate of income tax, applying to income over £150,000 per year, at 45% for 2013-14 (a reduction from the previous rate of 50%).

MPs were considering the Finance Bill when they voted on:

• amendment 1^[1], page 2, line 6, leave out paragraph (c).

The paragraph (c) in question was in clause 1 of the Finance Bill^[2] and set the additional rate of income tax for 2013-14 at 45%. Had the paragraph been removed there would have been no additional rate of income tax for 2013-14.

The MP who moved the amendment Cathy Jamieson claimed during the debate:

• Amendments 1 and 2 would remove the cut in the top tax rate for people earning more than £150,000 a year

The Finance Bill was not amending the previous rates of income tax, but setting them for 2013-14.

At the time of the vote the additional rate was 50% charged on income over £150,000 per year, as it had been since the additional rate had been introduced in 2010-11^[4][5]. The Finance Bill contained a provision to set the rate at 45% for 2013-14.

Had the amendment passed the intent of the mover, and the intent of the House of Commons may have been taken into account and further amendments to effect that intent may have been moved.

==

• [1] Amendment sheet for consideration of the Finance Bill 2012 on 2 July 2012
• [2] Clause 4 of the Finance Bill 2012-2013 (as Amended in Public Bill Committee) dated 27 June 2012
• [3] Cathy Jamieson MP (Kilmarnock and Loudoun, Labour), House of Commons, 2 July 2012
• [4] Income Tax Rates and Allowances - HMRC
• [5] RATES OF INCOME TAX: 1990-91 TO 2013-14 - HMRC

Debate in Parliament | Source |