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MPs on the Finance (No.3) Bill public bill committee recommenced their clause by clause scrutiny of the Finance Bill at 11.30 am on Thursday 6 December, starting with clauses 57-58 on vehicle excise duty (VED). No Opposition amendments were successful.

MPs continued their committee stage scrutiny of the Finance Bill this afternoon. Debate was initially concluded on clauses 36 and 37, relating to oil activities and petroleum revenue tax, moving on to stamp duty land tax (higher rates for additional dwellings etc), and other stamp duty and SDRT measures. The committee then move on to debate clauses 50-52, on VAT, and changes to alcohol and tobacco duties, concluding at clause 56.

MPs debated clauses in Finance Bill No.3 this morning (Tues). MPs debated clauses relating to capital allowances, leases and oil activities and petroleum revenue tax. No Opposition amendments were passed into the Bill.

Anyone with even a passing interest in tech or tax will be aware of recent hubbub around the proposed introduction of a UK digital services tax (DST).  The new tax, which will be targeted at specific highly digitised profit-making business models that generate over £500m, was announced by the Chancellor, Philip Hammond, at the recent Autumn Budget.

MPs have debated clause 21 on permanent establishments: preparatory or auxiliary activities; clause 24 on Group relief etc: meaning of “UK related” company; clause 25 on intangible fixed assets: exceptions to degrouping charges etc; clause 26 and schedule 9: Corporation tax relief for carried forward losses; clause 27 and schedule 10: Corporate interest restriction; clause 28 and schedule 11: Debtor relationships of company where money lent to connected companies; clause 30: Special rate expenditure on plant and machinery; and Clause 31: Temporary increase in annual investment allowance.

MPs debated clause 14 on disposals of UK land etc: payment on account of capital gains, clause 17 on non-uk resident companies carrying on UK property businesses and clause 18 about the diverted profits tax, in this morning's session. 

MPs resumed debate and passed clauses 7 on Optional remuneration arrangements, 11 about beneficiaries of tax-exempt employer-provided pension benefits, 12 which related to employment and social security income and clauses 13 which dealt with tax treatment of sales of UK land by non-UK residents. All Opposition amendments were defeated. There were regular mentions of the CIOT/IfG Better Budgets report which Labour used to criticise the Government's approach to this Finance Bill. The Public Bill Committee will begin the next session on Thursday on clause 14, which covers disposals of UK land and payments on account of capital gains tax.

MPs debated and agreed clauses 1-4 of Finance Bill (No.3), agreeing that the government should continue to levy income tax and corporation tax, and the rates of income tax for 2019-20. Attempts by opposition MPs to get the committee to take oral evidence from experts, and to require the government to review aspects of tax policy, were rejected.

MPs from across the political spectrum channelled the anger and distress of constituents affected by the ‘2019 loan charge’, during a 90 minute debate in Westminster Hall on Tuesday, and argued the government’s efforts should be focused on those who had enabled and promoted loan schemes rather than their often unwitting clients.

Last week, the European Commission and UK Government published its draft Withdrawal Agreement on the UK’s withdrawal from the EU. Also published was a seven page political declaration on the UK’s vision of a future EU-UK relationship. Our initial thoughts on what this means for VAT, Customs and Excise duties are set out in this blog although further analysis is needed to do justice to the 585 page withdrawal agreement, plus explanatory notes.