Votes and Proceedings
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58 Tuesday 28 November 2017 Votes and Proceedings The House met at 11.30 am. Prayers 1 Questions to the Chancellor of the Exchequer 2 Urgent Question: Leaving the EU: sectoral impact assessments (Mr Robin Walker) 3 Statement: Maternity safety strategy (Secretary Jeremy Hunt) 4 Child Maintenance (Assessment of Parents' Income): Motion for leave to bring in a Bill (Standing Order No. 23) Ordered, That leave be given to bring in a Bill to equalise the assessment and enforcement of child maintenance arrangements of children of self-employed parents with those of children of other employed parents; and for connected purposes; That Heidi Allen, Antoinette Sandbach, Mr Ranil Jayawardena, Stephen McPartland, Suella Fernandes, Frank Field, Layla Moran, Neil Gray, Kit Malthouse, Mrs Cheryl Gillan, Kevin Hollinrake and Mr Steve Reed present the Bill. Heidi Allen accordingly presented the Bill. Bill read the first time; to be read a second time on Friday 23 February 2018, and to be printed (Bill 133). 5 Ways and Means: Income tax (charge) (last day) Debate resumed (Order, 27 November). Question again proposed, That income tax is charged for the tax year 2018-19. And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968. The Deputy Speaker announced a time limit on backbench speeches (Standing Order No. 47(1)). Resolved, That income tax is charged for the tax year 2018-19. And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968. The Speaker then put forthwith the Questions necessary to dispose of the further Motions which were made by the Chancellor of the Exchequer (Standing Order No. 51(3)). 2 Votes and Proceedings: 28 November 2017 58 2. Corporation tax (charge for financial year 2019) Resolved, That (notwithstanding anything to the contrary in the practice of the House relating to the matters that may be included in Finance Bills) provision may be made taking effect in a future year charging corporation tax for the financial year 2019. 3. Income tax (main rates) Resolved, That for the tax year 2018-19 the main rates of income tax are as follows— (a) the basic rate is 20%; (b) the higher rate is 40%; (c) the additional rate is 45%. And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968. 4. Income tax (default and savings rates) Resolved, That— (1) For the tax year 2018-19 the default rates of income tax are as follows— (a) the default basic rate is 20%; (b) the default higher rate is 40%; (c) the default additional rate is 45%. (2) For the tax year 2018-19 the savings rates of income tax are as follows— (a) the savings basic rate is 20%; (b) the savings higher rate is 40%; (c) the savings additional rate is 45%. And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968. 5. Income tax (starting rate limit for savings) Resolved, That section 21 of the Income Tax Act 2007 (indexation) does not apply in relation to the starting rate limit for savings for the tax year 2018-19 (so that, under section 12(3) of the Income Tax Act 2007 as amended by section 4 of the Finance Act 2017, that limit remains at £5000 for that tax year). And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968. 6. Transferable tax allowance Resolved, That— (1) Chapter 3A of Part 3 of the Income Tax Act 2007 (transferable tax allowance) is amended as follows. (2) Section 55B (tax reduction: entitlement) is amended in accordance with paragraphs (3) to (5). (3) In subsection (2) (conditions for entitlement to tax reduction)— (a) for paragraph (a) (individual is spouse or civil partner of maker of election in force under section 55C) substitute— 58 Votes and Proceedings: 28 November 2017 3 "(a) the individual is the gaining party (see section 55C(1)(a)) in the case of an election under section 55C which is in force for the tax year,", and (b) in paragraph (d), for "individual's" substitute "relinquishing". (4) After subsection (5) insert— "(5A) In this section "the relinquishing spouse or civil partner", in relation to an election under section 55C, means the individual mentioned in section 55C(1)(a) by whom, or by whose personal representatives, the election is made." (5) In subsection (6) (reduced personal allowance for transferor)— (a) after "under subsection (1)" insert "by reference to an election under section 55C", and (b) for "individual's" substitute "relinquishing". (6) Section 55C (elections to reduce personal allowance) is amended in accordance with paragraphs (7) and (8). (7) In subsection (1)(a) (individual may make election if married or in civil partnership)— (a) after "the same person" insert "("the gaining party")", and (b) in sub-paragraph (ii), after "when the election is made" insert "or, where the election is made after the death of one or each of them, when they were last both living". (8) After subsection (4) insert— "(5) The personal representatives of an individual may make any election for the purposes of section 55B that the individual (if living) might make in relation to— (a) the tax year in which the individual dies, or (b) an earlier tax year." (9) Section 55D (procedure for elections under section 55C) is amended in accordance with paragraphs (10) and (11). (10) In subsection (3) (elections which are not automatically continued in force for subsequent years), after "is made after the end of the tax year to which it relates" insert "or is made after the death of either of the spouses or civil partners". (11) In subsection (4) (election may be withdrawn only by individual who made it), after "by whom the election was made" insert "; an election made by an individual's personal representatives may not be withdrawn". (12) The amendments made by this Resolution— (a) come into force on 29 November 2017, (b) have effect in relation to elections made on or after that day, and (c) so have effect even where a relevant death occurred before that day. And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968. 7. Deduction for seafarers' earnings for duties performed outside UK Resolved, That provision may be made in connection with the application of Chapter 6 of Part 5 of the Income Tax (Earnings and Pensions) Act 2003 in relation to employment in the Royal Fleet Auxiliary Service. 4 Votes and Proceedings: 28 November 2017 58 8. Exemption for armed forces' accommodation allowances Resolved, That provision may be made exempting, from income tax, amounts paid as accommodation allowances to, or in respect of, members of the armed forces of the Crown. 9. Benefits in kind: cars Resolved, That provision (including provision having retrospective effect) may be made amending Chapter 6 of Part 3 of the Income Tax (Earnings and Pensions) Act 2003. 10. Foreign-service relief for benefits on termination of employment Resolved, That provision may be made amending Chapter 3 of Part 6 of the Income Tax (Earnings and Pensions) Act 2003 in connection with restricting, in relation to payments and other benefits received in connection with the termination of a person's employment, relief given by that Chapter by reference to service within the definition of "foreign service" given by section 413(2) of that Act. 11. Employment income provided through third parties Resolved, That provision may be made in connection with— (a) the application and operation of Chapter 2 of Part 7A of the Income Tax (Earnings and Pensions) Act 2003, and (b) the operation of Part 11 of that Act in connection with Schedule 11 to the Finance (No. 2) Act 2017. 12. Disguised remuneration schemes (earnings charged to tax) Resolved, That— (1) In section 554A of the Income Tax (Earnings and Pensions) Act 2003 (employment income provided through third parties: application of Chapter 2 of Part 7A), after subsection (5) insert— "(5A) Subsections (5B) and (5C) apply where— (a) a payment to a person other than A, or to A as a trustee, is of earnings from A's employment with B, and (b) the earnings are, in whole or part, charged to tax under the employment income Parts otherwise than by virtue of this Part, and for this purpose it does not matter whether all or some only or none of the tax is paid (but see sections 554Z5 and 554Z11B). (5B) For the purposes of subsection (5C), an arrangement is a "redirected-earnings arrangement" if it (wholly or partly) covers or relates to redirected earnings; and for the purposes of this subsection and subsection (5C) "redirected earnings" means— (a) the payment mentioned in subsection (5A)(a), or (b) any sum or other property which (directly or indirectly)— (i) represents, or (ii) is derived from, that payment. (5C) The circumstances mentioned in subsection (5A)— (a) do not prevent a redirected-earnings arrangement being within subsection (1)(b), and (b) do not prevent rewards or recognition or loans being in connection with A's 58 Votes and Proceedings: 28 November 2017 5 employment with B for the purposes of subsection (1)(c) where there is use of redirected earnings for the provision of the whole, or part, of the rewards or recognition or loans." (2) The amendment made by paragraph (1)— (a) comes into force on 29 November 2017, (b) has effect for the purposes of the operation of Part 7A of the Income Tax (Earnings and Pensions) Act 2003 in relation to relevant steps taken on or after 22 November 2017, and (c) so has effect in the case of payments within the new subsection (5A)(a) whenever made (including ones made before 6 April 2011).