Finance Bill — New Clause 14 — Report on Rate of Income Tax Applied to Incomes Over £150,000 — 1 Jul 2014 at 15:00

The majority of MPs voted against requiring a report on the additional rate of income tax.

The additional rate of income tax applies to income over £150,000. In April 2013 it was reduced from 50% to 45% and the latter was the rate at the time of the vote.

MPs were considering the Finance Bill^[1]. The proposed new clause which was rejected in this vote was titled Report on the additional rate of income tax and stated:

• ‘(1) The Chancellor of the Exchequer shall, within three months of the passing of this Act, publish a report on the additional rate of income tax.
• (2) The report shall set out the impact upon Exchequer receipts of setting the additional rate at 50 per cent in the tax year 2015-16.
• (3) The report shall set out the impact of reducing the additional rate for 2013-14 on the amount of income tax paid by—
• (a) all people who are liable for the additional rate;
• (b) those with taxable incomes of over £250,000 per year; and
• (c) those with taxable incomes of over £1,000,000 per year.
• (4) The report shall set out the impact of the reduction in the additional rate for 2013-14 on the level of bonuses awarded in April 2013 to employees in the financial sector.”

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• [1] Parliament's webpage on the Finance Bill 2013-14 to 2014-15

Debate in Parliament | Source |