The CIOT external relations team have produced a detailed (40 pages) note of committee stage debates on Finance Bill 2016.
Here is a summary of the contents -
Pages 2-6 - Committee of the Whole House Day One – 27 June 2016
Employment income, climate change levy and insurance premium tax
MPs debated and approved 12 clauses in the income tax part of the Bill, including changes to tax treatment of payments from sporting testimonials, trivial benefits, travel expenses of workers who provide their services through intermediaries and employee share schemes. They also debated and approved five clauses making changes to the climate change levy and rejected a Labour amendment in this area, and approved a clause increasing insurance premium tax.
Pages 6-15 - Committee of the Whole House Day Two – 28 June 2016
Tax avoidance and evasion, corporation tax, income tax and corporation tax, capital gains tax
MPs debated 32 clauses of the Bill and a large number of related government amendments and amendments and new clauses tabled by opposition MPs. These were divided into three groups – measures around avoidance and evasion (including the GAAR and the new serial avoidance regime) (clauses 144-154); a group of clauses relating to corporation tax or to both corporation tax and income tax (including proposed cuts to the CT rate and repeals of the renewals allowance) (clauses 41-44 & 65-71); and the capital gains tax clauses (including some changes to Entrepreneurs’ Relief which CIOT had been instrumental in pressing for). All clauses in the original Bill were passed, as were all government amendments. All non-government amendments and new clauses were defeated or withdrawn before being put to the vote.
Pages 16-22 - Public Bill Committee sittings one and two - 30 June 2016
The committee moved briskly through the Bill, covering all the remaining clauses in Part 1 (Income Tax) and reaching clause 49 in Part 2 (Corporation Tax). This included debate on the income tax rate and allowances, including changes to taxation of savings, dividends and pension contributions. CIOT, ATT and LITRG views were cited by the opposition on a number of areas, including pensions flexibility (clause 22), use of a home for the purposes of a trade (clause 24) and loan relationships (clause 45). All government clauses and a significant number of government amendments were agreed. There was only one contested vote – on an opposition amendment related to the additional rate of income tax – and this was defeated; other opposition amendments were debated but not pressed to a vote. At the close of proceedings the opposition spokesman resigned.
Pages 22-29 - Public Bill Committee sittings three and four - 5 July 2016
The committee covered clauses 50 through to 110 of the Bill (excluding those previously covered during Committee of whole House proceedings). These included the concluding clauses of Part 2 of the Bill (corporation tax) dealing with creative industry reliefs, banks, the oil and gas sector, changes to the patent box and action to combat hybrids and other mismatches. Parts 5 (inheritance tax) and 6 (apprenticeship levy) were also covered. Changes to the IHT residence nil-rate band (clause 82) were the only clause objected to by the opposition (but they were still passed). CIOT comments on this clause were cited by the opposition. A large number of government amendments were again tabled (and passed), particularly on the patent box and apprenticeship levy. Amendments on the latter included allowing connected companies and connected charities to share the levy allowance within their group as they choose - something CIOT had called for.
Pages 29-40 - Public Bill Committee - sittings five and six - 7 July 2016
The committee covered clauses 111 through to clause 177 (excluding those previously covered during Committee of whole House proceedings) in its final two sittings. These included parts 7 (VAT), 8 (SDLT and ATED), 9 (other taxes and duties), 11 (administration, enforcement & supplementary powers) and 12 (Office of Tax Simplification). Government amendments were passed to clause 117 (SDLT higher rates for additional dwellings, etc.) and new clauses were passed relating to stamp duty and the acquisition of a target company’s share capital, and to introduce a specific charge to income tax or corporation tax on profits from the disposal of land in the UK. Three new clauses relating to royalty withholding tax policy, which had been debated previously, were also passed. The SNP forced votes on two of their new clauses, calling for a reviews of the fuel duty regulation regime and of how the tax regime could increase the competitiveness of UK companies bidding for supply chain contracts associated with oil and gas decommissioning. Both were defeated. CIOT comments were highlighted by the opposition on clauses 116, 117 (both SDLT), 155 (simple assessments), 156 (time limit for SA returns), 158-160 (judgment debts), 164 (data gathering powers) and the new clauses on disposal of land in the UK. LITRG were quoted on clauses 164 and 165 (both data gathering powers).
The next stop for the Bill is report stage, beginning on Monday 5 September.
CIOT Head of External Relations
Monday 1 August 2016