Finance Bill — Clause 5 — Changing the Threshold for Treating Payments Relating to Termination of Employment as Employment Income — 11 Oct 2017 at 15:00
Zac Goldsmith MP, Richmond Park voted to allow the threshold at which payments made in relation to the termination of employment are treated as employment income to be reduced via regulations, rather than requiring an Act of Parliament for any reduction.
The majority of MPs voted to allow the threshold at which payments made in relation to the termination of employment are treated as employment income to be reduced via regulations, rather than requiring an Act of Parliament to make any reduction.
Reducing the threshold would increase the National Insurance due as a result of such payments as National Insurance is only paid on employment income.
MPs were considering the Finance Bill.
The amendment rejected in this vote was:
- Amendment propose: 2, page 14, line 15, leave out “different” and insert “higher”.
Had it not been rejected this amendment would have affected a proposed new addition to the Income Tax (Earnings and Pensions) Act 2003 relating to the taxation of payments in connection with the termination of employment which stated:
- 404B Power to vary threshold
- (1)The Treasury may by regulations amend the listed provisions by substituting, for the amount for the time being mentioned in those provisions, a different amount.
The amount in question is the £30,000 threshold provided for by Sections 403 and 404 of the Income Tax (Earnings and Pensions) Act 2003, over which payments on termination of employment are treated as employment income for tax purposes.
The rejected amendment was accompanied by the following explanatory statement:
- This amendment removes the power for the Treasury to reduce the £30,000 threshold in connection with the taxation of termination payments by regulations.
Votes by party, red entries are votes against the majority for that party.
What is Tell? '+1 tell' means that in addition one member of that party was a teller for that division lobby.
What are Boths? An MP can vote both aye and no in the same division. The boths page explains this.
What is Turnout? This is measured against the total membership of the party at the time of the vote.
|Party||Majority (No)||Minority (Aye)||Both||Turnout|
|Con||301 (+2 tell)||0||0||95.6%|
|Lab||0||232 (+2 tell)||0||89.3%|