53

House of Commons

Thursday 15 July 2010

Committee of the whole House

New Amendments handed in are marked thus

Finance Bill

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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

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

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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Revised 15 July 2010