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53

 

House of Commons

 
 

Thursday 15 July 2010

 

Committee of the whole House

 

New Amendments handed in are marked thus Parliamentary Star

 

Finance Bill


 

Note

 

The Amendments have been arranged in accordance with the Order of the

 

Committee [12 July].

 


 

Mr Christopher Chope

 

18

 

Clause  4,  page  2,  line  23,  leave out ‘“6 per cent”’ and insert ‘“5 per cent in the case

 

of personal health insurance, and 6 per cent in any other case”’.

 

Mr Christopher Chope

 

19

 

Clause  4,  page  2,  line  23,  leave out ‘“6 per cent”’ and insert ‘“5 per cent in the case

 

of motor insurance, and 6 per cent in any other case”’.

 

Stewart Hosie

 

Jonathan Edwards

 

Angus Robertson

 

Mr Elfyn Llwyd

 

Caroline Lucas

 

Mr Mike Weir

 

15

 

Clause  4,  page  2,  line  26,  at end add ‘, subject to a report having been laid by the

 

Secretary of State containing an assessment of the consequences of the changes in

 

subsection (1) on consumers and the insurance industry.’.

 

Mr Liam Byrne

 

Ms Angela Eagle

 

Stephen Timms

 

Mr Alistair Darling

 

48

 

Clause  4,  page  2,  line  32,  leave out subsection (4).


 
 

Committee of the whole House: 15 July 2010              

54

 

Finance Bill, continued

 
 

Chris Leslie

 

24

 

Clause  4,  page  2,  line  34,  at end add—

 

‘(5)    

The Secretary of State must report by the end of 2010 his assessment of the

 

benefits for taxpayers of advertising the Insurance Premium Tax rates in a more

 

prominent manner on all relevant insurance policy documentation.’.

 

Chris Leslie

 

59

 

Clause  4,  page  2,  line  34,  at end add—

 

‘(5)    

Any proceeds for the Exchequer arising from this section in respect of motor

 

insurance are to be dedicated to road safety and casualty reduction measures.’.

 


 

Mr Alistair Darling

 

Mr Liam Byrne

 

Stephen Timms

 

Ms Angela Eagle

 

60

 

Clause  5,  page  3,  line  9,  at end add—

 

‘(4)    

An order under this section may only be made once the Treasury has published a

 

report, including—

 

(a)    

the outline for the proposed replacement arrangement for the provisions

 

contained in Schedule 2 to the Finance Act 2010;

 

(b)    

a distributional analysis showing the likely impact of the proposed

 

replacement arrangement; and

 

(c)    

the revenue implications of the proposed replacement arrangement.’.

 

Geraint Davies

 

Chris Leslie

 

Mike Gapes

 

Mr Wayne David

 

Mr Michael Meacher

 

Bridget Phillipson

 

62

 

Page  3,  line  4,  leave out Clause 5.

 


 

Stewart Hosie

 

Jonathan Edwards

 

Angus Robertson

 

Mr Elfyn Llwyd

 

Caroline Lucas

 

Mr Mike Weir

 

16

 

Clause  6,  page  3,  line  12,  leave out ‘22 June 2010’ and insert ‘a date set by the

 

Secretary of State by regulation.’.


 
 

Committee of the whole House: 15 July 2010              

55

 

Finance Bill, continued

 
 

Mr Alistair Darling

 

Mr Liam Byrne

 

Stephen Timms

 

Ms Angela Eagle

 

61

 

Clause  6,  page  3,  line  12,  at end add—

 

‘(2)    

Schedule 3 shall not have effect unless the Chancellor of the Exchequer has laid

 

before the House of Commons a report on the implications of the abolition of

 

compulsory annuitisation of pensions, including—

 

(a)    

the revenue implications of abolition; and

 

(b)    

a distributional analysis showing who would benefit from abolition.’.

 


 

Stewart Hosie

 

Jonathan Edwards

 

Angus Robertson

 

Mr Elfyn Llwyd

 

Caroline Lucas

 

Mr Mike Weir

 

17

 

Schedule  3,  page  19,  line  38,  leave out ‘22 June 2010’ and insert ‘a date set by the

 

Secretary of State by regulation.’.

 


 

nEW cLAUSEs

 

Revenue forecasts for tax rate changes

 

Mr John Redwood

 

NC1

 

To move the following Clause:—

 

‘(1)    

When proposing future increases in rates of tax on income and capital the

 

Government shall bring forward a forecast of revenue following the change based

 

upon a dynamic model of the impact of the rate increase on taxpayer numbers and

 

behaviour.

 

(2)    

These models will be based on analysis of past behavioural changes and adjusted

 

in the light of experience.’.

 



 
 

Committee of the whole House: 15 July 2010              

56

 

Finance Bill, continued

 
 

Inquiry into a banking transactions tax

 

Caroline Lucas

 

Mr Graham Allen

 

Richard Burden

 

Jonathan Edwards

 

Hywel Williams

 

Mr Elfyn Llwyd

 

NC2

 

To move the following Clause:—

 

‘(1)    

It shall be the duty of the Chancellor of the Exchequer to appoint a committee of

 

inquiry to report within 6 months on the practical action necessary to introduce a

 

banking transactions tax.

 

(2)    

For the purposes of subsection (1), a banking transactions tax is a tax, charged at

 

the rate of 0.005 per cent of the value of the transaction, on—

 

(a)    

foreign exchange dealings in sterling, and

 

(b)    

derivative, swap, bond and over the counter trading,

 

    

where the economic substance of the transaction arises in the United Kingdom or

 

the place where the transaction is recorded is the United Kingdom.’.

 


 

The Office for Tax Responsibility

 

John McDonnell

 

NC3

 

To move the following Clause:—

 

‘(1)    

There shall be established The Office for Tax Responsibility.

 

(2)    

The Office for Tax Responsibility shall report to, but be independent of, the

 

Chancellor of the Exchequer and shall also be independent of Her Majesty’s

 

Treasury and Her Majesty’s Revenue and Customs (“HMRC”).

 

(3)    

The Office for Tax Responsibility shall be managed by the Director for Tax

 

Responsibility who shall be supported in their work by no fewer than two and no

 

more than four Commissioners for Tax Responsibility who shall, with the

 

Director of Tax Responsibility, constitute the Board of the Office for Tax

 

Responsibility.

 

(4)    

The Office for Tax Responsibility shall—

 

(a)    

be afforded such budget as shall be required for it to undertake its duties

 

as laid down in this Act;

 

(b)    

be given the right to access all such information held by such other

 

government departments, agencies, local authorities and authorities

 

established under statute as it in its sole discretion shall determine is

 

required to fulfil its duties laid down in this Act subject to the sole

 

requirement that all obligations to respect the confidentiality of those

 

with whom those such other agents of government engage shall also be

 

assumed by the Office for Tax Responsibility when using data those

 

agents of government shall supply to the Office for Tax Responsibility

 

for the purpose of undertaking its duties;

 

(c)    

engage such staff (including the Director and Commissioners) as it needs

 

to fulfil its duties, such staff not to be seconded from other government

 

departments, agencies, local authorities or authorities established under


 
 

Committee of the whole House: 15 July 2010              

57

 

Finance Bill, continued

 
 

such statute and such staff not to be seconded to it by any entity registered

 

at the time such secondment shall take place as a tax agent by HMRC.

 

(5)    

The Office for Tax Responsibility shall report annually on—

 

(a)    

its best estimate of the United Kingdom tax gap. In so doing it shall—

 

(i)    

calculate the tax gap separately for each of income tax, national

 

insurance in all its forms, corporation tax, value added tax, excise

 

and customs duties in all their forms, stamp duty in all its forms,

 

capital gains tax, inheritance tax, petroleum revenue tax, landfill

 

tax, air passenger duty, insurance premium tax, climate change

 

levy, aggregates levy, domestic rates and business rates, but with

 

specific requirement being made that the interaction of the tax

 

gap calculated for any one tax be specifically considered when

 

estimating the tax gap for any other tax before preparing and

 

publishing an estimate of the total annual United Kingdom tax

 

gap;

 

(ii)    

use a methodology for calculating the tax gap that estimates the

 

net theoretical tax liability for the particular tax subject to

 

calculation within the United Kingdom economy as a whole

 

from which is then subtracted the acutal receipts for the tax in

 

question to produce an estimate of the annual tax gap for the tax

 

subject to calculation;

 

(iii)    

analyse the tax gap with regard to each tax between that

 

attributable to tax evasion, tax avoidance and unpaid or late paid

 

tax;

 

(iv)    

publish its methodology and workings with regard to the

 

calculation of each component of the tax gap subject only to

 

withholding such information as is required to prevent any

 

breach of taxpayer confidentiality;

 

(b)    

progress made by HMRC in closing the tax gap;

 

(c)    

the methods it proposes HMRC and other agencies, if appropriate, should

 

adopt better to tackle the tax gap;

 

(d)    

those legislative changes required, in its opinion, to close the tax gap;

 

(e)    

the budget resources that in its opinion HMRC and those other agencies

 

addressing that issue will require to address the tax gap it identifies;

 

(f)    

its forecast of the taxation and other benefits that might arise from

 

allocating such resources for the purpose identified in paragraph (e)

 

above: other benefits for this purpose to include all those social benefits

 

resulting from tackling the tax gap.

 

(6)    

The Office for Tax Responsibility shall engage with those persons who wish to

 

make representations on matters relating to the tax gap so that those persons’

 

concerns and expectations for the closing of that tax gap are reflected in the work

 

of the Office for Tax Responsibility.’.

 



 
 

Committee of the whole House: 15 July 2010              

58

 

Finance Bill, continued

 
 

Expenditure on nuclear weapons

 

Jeremy Corbyn

 

Caroline Lucas

 

Sheila Gilmore

 

Tessa Munt

 

Mr Elfyn Llwyd

 

Hywel Williams

 

Jonathan Edwards

 

NC4

 

Parliamentary Star    

To move the following Clause:—

 

‘There shall be no expenditure on research, development or testing of any new

 

nuclear weapon systems without specific parliamentary approval.’.

 


 

Duration of sections 1 to 4 and Schedules 1 and 2

 

Andrew George

 

Roger Williams

 

Mr Mark Williams

 

Mr David Ward

 

Mr John Leech

 

NC5

 

Parliamentary Star    

To move the following Clause:—

 

‘Sections 1 to 4 and Schedules 1 and 2 expire on 4 January 2013.’.

 

 

Order of the Committee [12 July]

 

That the order in which proceedings in the Committee of the whole House on the

 

Finance Bill are taken shall be: Clauses 1 and 2, Schedule 1, Clause 3, Schedule 2, Clauses

 

4 to 6, Schedule 3, Clause 7, Schedule 4, Clause 8, Schedule 5, Clause 9, new Clauses,

 

new Schedules, Clauses 10 and 11.

 


 
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