Finance Bill 2015-16 — Third Reading — 26 Oct 2015 at 22:00

The majority of MPs voted for the measures in the Finance Bill including an increase in the income tax personal allowance, and to cap the rates of VAT and income tax at their existing rates until the next general election.

MPs were considering the Finance Bill^[1][2], the motion supported by the majority of MPs in this vote was:

• That the Bill be now read the Third time.

The Finance Bill^[1][2]:

• sets out that that the basic, higher and additional rates of income tax will not increase above 20%, 40% and 45% for the duration of the current Parliament.
• sets out that VAT rates will not rise for the duration of the current Parliament.
• sets the amount of the income tax personal allowance for 2016-17 at £11,000 and 2017-18 at £11,200
• sets the amount of the income tax basic rate limit for 2016-17 at £32,000 and 2017- 18 at £32,400
• sets the main rate of corporation tax (CT) at 19% for the financial years beginning 1 April 2017, 1 April 2018 and 1 April 2019 and at 18% for the financial year beginning 1 April 2020
• sets the Annual Investment Allowance (AIA) (investment in assets which can be set against profits before corporation tax is charged) to £200,000 (it was previously £500,000 but would otherwise have dropped to £25,000)
• raised the effective inheritance tax threshold to £1 million
• decreases the rates at which the bank levy is charged from 1 January 2016 onwards.

==

• [1] Parliament's webpage on the Finance Bill 2015-16
• [2] Explanatory notes to the Finance Bill 2015-16

Debate in Parliament | Source |