National Insurance Contributions (Termination Awards and Sporting Testimonials) Bill — Regular Reviews of Effect of Tax Treatment of Termination Awards — 10 Jun 2019 at 19:15

The majority of MPs voted not to require regular reviews of the effect of charging national insurance on the amount of a termination award that exceeds £30,000.

MPs were considering the National Insurance Contributions (Termination Awards and Sporting Testimonials) Bill^[1].

Sections 1 and 2 of the Bill provided for Class 1 A national insurance contributions (currently 12%) to be charged on the amount of a termination award that exceeds £30,000.

The proposed new clause rejected in this vote was titled: Effects of termination awards provisions and stated:

• (1) The Treasury must publish reviews of whether the payment of Class 1A contributions on termination awards under sections 1 and 2 has had—
• (a) any effect on the number of termination awards made above £30,000;
• (b) any effect on the size of termination awards made above £30,000; or
• (c) a disproportionate effect on—
• (i) women,
• (ii) pregnant women,
• (iii) persons aged 50 or over, or
• (iv) any other group of people with protected characteristics (within the meaning of the Equality Act 2010).
• (2) The first review under subsection (1) shall be published no later than 24 months after this section comes into force.
• (3) Subsequent reviews under subsection (1) shall be published no later than 24 months after publication of the previous review."

The rejected new clause was accompanied by the following explanatory statement:

"This new clause would provide for a general review of the termination awards provisions of this Act within every period of 24 months."

• [1] Parliament's webpage on the National Insurance Contributions (Termination Awards and Sporting Testimonials) Bill

Debate in Parliament |