Finance Bill — Third Reading — 24 May 2021 at 22:28
The majority of MPs voted for a range of tax and pensions provisions including keeping key income tax rates and thresholds unchanged and to increase the main rate of Corporation Tax from 19 to 25% from 2023.
The motion supported by a majority of MPs in this vote was:
- That the Bill be now read a Second time.
The passing of this motion enabled the Bill to continue on its path to becoming law.
The Bill included provisions:
- to impose income tax during the tax year 2021-22.
- to set the 2021-22 rates for income tax at: Basic rate - 20%; Higher rate - 40%; Additional rate - 45%. (No change on the previous year).
- to increase the tax rates on taxed dividend income.
- to retain the threshold for starting to tax interest on savings at £5,000.
- to set the thresholds for starting to pay income tax, and for starting to pay income tax at the higher rate at £12,570 and £37,700 respectively for 2022-2026.
- to set the main rate of Corporation Tax for the financial year 2022 at 19% and the main rate of corporation tax for the financial year 2023 at 25%
The rates for starting to pay income tax, and for starting to pay income tax at the higher rate, for 2021-22 were £12,570 and £37,700 respectively, so were unchanged.
The main rate of Corporation Tax had been 19% since 2017.
-  Parliament's webpage on the Finance (No. 2) Bill, Parliament.uk
-  The Finance (No. 2) Bill (as introduced 11 March 2021), Parliament.uk
-  Explanatory notes to the Finance (No. 2) Bill, Parliament.uk
-  Income Tax rates and allowances for current and past years, Gov.uk
-  Rates and allowances for Corporation Tax, HMRC, Gov.uk
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 (Aye)||Minority (No)||Both||Turnout|
|Con||356 (+2 tell)||0||0||98.4%|
|Lab||0||194 (+2 tell)||0||99.0%|