UK Parliament / Open data

Finance Bill

Proceeding contribution from David Gauke (Conservative) in the House of Commons on Tuesday, 1 July 2014. It occurred during Debate on bills on Finance Bill.

Someone says most of it, but in the time available, I ought to turn to the new clause.

The new clause calls for the Chancellor to publish a report within three months of passing the Act to set out the impact of setting the additional rate at 50% for the tax year 2015-16. In addition, it asks for an assessment of the impact of reducing the additional rate to 45% for 2013-14 on the amount of income tax paid by those with a taxable income of more than £250,000 a year and those with a taxable income of more than £1 million a year, as well as on all those who are liable for the additional rate. It also proposes that the report set out the impact of reducing the additional rate on the level of bonuses awarded in April 2013 to employees in the financial sector. I hope that there will be no controversy when I say that, in order to be credible, any such analysis would need to take into account behavioural impacts, as did the HMRC report on the additional rate that was published at Budget 2012. It is clearly inadequate to look simply at theoretical income tax liabilities when increasing taxes.

Let me use this opportunity to assure hon. Members once more that the Government already consider the impact of any policy decisions taken. The HMRC report on the additional rate concluded that the underlying

yield from the introduction of the 50p rate was much lower than originally forecast, due to large behavioural effects.

Type
Proceeding contribution
Reference
583 cc787-8 
Session
2014-15
Chamber / Committee
House of Commons chamber
Subjects
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