Opposition Amendments to the Finance Bill

On Monday 2 July and Tuesday 3 July 2013 the Opposition amendments to the Finance Bill were debated.

Valerie Vaz MP said:

“The first amendment that the Opposition tabled was to oppose the cutting of the top rate of tax from 50p to 45p. This is a tax cut of an average of £100,000 for 13,000 people who earn over £1million. This millionaires’ tax cut is taking place at the same time as families will be an average of £891 worse off because of changes introduced by this Government.”

“The second amendment that was debated was the implementation of a Mansion Tax on homes worth over £2million. The Mansion Tax would offset a reintroduction of a 10p tax band above the personal allowance. This would be part of a fairer tax system under a Labour Government.”

“Tackling tax avoidance was the subject of the third amendment and this would also be part of Labour’s fairer tax system. Changes are needed at an international and domestic level: working with G8 countries to reach international agreements, but also making sure the HMRC has the power, resources and capacity to effectively carry out its work. Under this Government, the HMRC is facing a £2billion worth of budget cuts.”

“The Opposition also tabled an amendment calling for a review of the impact on the spending round on tax revenue. The Chancellor had to announce a spending review to cut a further £11.5billion in 2015-16, as his economic plan has failed. Labour has proposed bringing forward infrastructure investments this year to boost the economy and create jobs. Work has begun on just one of the 261 schools in desperate need of rebuilding under the Priority School Building Programme. In Walsall South, Joseph Leckie Academy is a school which needs capital funding from the Government.”

“The investment management industry manages around £5 trillion of funds. The abolition of Schedule 19, the Stamp Duty Reserve Tax, will cost the taxpayer £145million. The final opposition amendment would compel the Chancellor to publish a report showing exactly who benefits and who is left worse off by giving away £145 million.”

Additional Information

Amendments tabled by HM Opposition

Income tax rates of 50p: Ayes 229; Noes 290. Majority 61.

Mansion tax/10p tax band: Ayes 226; Noes 281. Majority 55.

General anti-abuse rule (Tax Avoidance): Ayes 231; Noes 300. Majority 69.

Impact review of tax measure from the Spending Review: Ayes 234; Noes 303. Majority 69.

Tax treatment of financial services: Ayes 212; Noes 274. Majority 62.