Finance Bill 2013-14 to 2014-15 — Third Reading — 2 Jul 2014 at 19:00

The majority of MPs voted to increase the personal income tax allowance, to reduce corporation tax, and to give a greater tax incentive to companies investing in assets, as well as to support other measures in the Finance Bill.

The majority of MPs voted in favour of giving the Finance Bill^[1] a second reading, approving the key principles of the Bill and allowing it to continue on its path to becoming law.

Key elements of the Bill:

• An increase in the personal income tax allowance from £9,440 to £10,000 for 2014-15.
• A decrease in the threshold for starting to pay higher rate income tax from £32,011 to £31,865 for 2014-15..
• Main rate of Corporation Tax reduced to 21% from April 2014. The Small Profits rate is set at 20%.
• An increase in the "annual investment allowance", the amount spent on investing assets in a year which companies (or self-employed individuals) can deduct from their profits prior to the calculation of corporation tax due on the profits was increased to £500,000, whereas previously it had been £250,000.
• Cut in general duty on beer by 1 penny a pint, but with an increase for higher strength, >5% alcohol beers. Duties are increased on wines.
• Freezing the Air Passenger Duty applying to trips of under 2000 miles, and increasing other rates of Air Passenger Duty, but reducing the number of bands from four to two.

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

Debate in Parliament | Source |