National Insurance Contributions (Rate Ceilings) Bill (HL Bill 70)

A

BILL

TO

Set a ceiling on the main and additional primary percentages, the secondary
percentage and the upper earnings limit in relation to Class 1 national
insurance contributions.

Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and
consent of the Lords Spiritual and Temporal, and Commons, in this present
Parliament assembled, and by the authority of the same, as follows:—

Rate ceilings

1 Main and additional primary percentages

(1) In relation to primary Class 1 contributions payable in respect of any period in
a tax year to which this section applies—

(a) 5the main primary percentage shall not exceed 12%, and

(b) the additional primary percentage shall not exceed 2%.

(2) This section applies to a tax year which begins after the day on which this Act
comes into force but before the date of the first parliamentary general election
after that day.

(3) 10In this section, “main primary percentage” and “additional primary
percentage” are to be construed in accordance with section 8(2)(a) and (b) of
SSCBA 1992 and SSCB(NI)A 1992.

2 Secondary percentage

(1) In relation to secondary Class 1 contributions payable in respect of any period
15in a tax year to which this section applies, the secondary percentage shall not
exceed 13.8%.

(2) This section applies to a tax year which begins after the day on which this Act
comes into force but before the date of the first parliamentary general election
after that day.

(3) 20In this section, “secondary percentage” is to be construed in accordance with
section 9(2) of SSCBA 1992 and SSCB(NI)A 1992.

National Insurance Contributions (Rate Ceilings) BillPage 2

3 Upper earnings limit

(1) The upper earnings limit specified in regulations under section 5(1) of SSCBA
1992 and SSCB(NI)A 1992 for any tax year to which this section applies shall
not exceed the weekly equivalent of the proposed higher rate threshold for that
5tax year.

(2) This section applies to a tax year—

(a) which begins after the day on which this Act comes into force but
before the date of the first parliamentary general election after that day,
and

(b) 10for which income tax is charged.

(3) For the purposes of this section, the “proposed higher rate threshold” for a tax
year is the sum of—

(a) the basic rate limit for income tax for the tax year as proposed in the
pre-budget proposals for that year, and

(b) 15the personal allowance for income tax for the tax year as so proposed.

(4) For the purposes of this section, the weekly equivalent of a proposed higher
rate threshold for a tax year is the amount produced by dividing that threshold
by 52 and rounding up or down to the nearest pound.

(5) In this section “pre-budget proposals” means the government’s pre-budget
20fiscal proposals for a tax year which are contained in a document presented to
Parliament by the Chancellor of the Exchequer by Command of Her Majesty.

Final

4 Interpretation

In this Act—

  • 25SSCBA 1992” means the Social Security Contributions and Benefits Act
    1992;

  • “SSCB(NI)A 1992” means the Social Security Contributions and Benefits
    (Northern Ireland) Act 1992.

5 Extent, commencement and short title

(1) 30This Act extends to England and Wales, Scotland and Northern Ireland.

(2) This Act comes into force on the day on which it is passed.

(3) This Act may be cited as the National Insurance Contributions (Rate Ceilings)
Act 2015.