The House of Commons report stage continued yesterday. No amendments were made to the Finance Bill but there were some interesting exchanges on capital allowances and group filing for companies, and a surprise ‘impact assessment’ for the Tax Personality of the Year award.
A new clause (NC11), requiring the government to review tax measures applicable to those judged by regulators to engage in high cost credit lending, was defeated by 273 votes to 228 after almost three hours of debate.
NC12, requiring the Chancellor to direct the Office of Tax Simplification to consider options for simplifying or replacing the capital allowances regime, with a view to ensuring that businesses obtain tax relief for capital assets over a period ‘more closely matched to the full life of those assets’, was withdrawn.
NC13, requiring HM Treasury to recover through a windfall tax all ‘profits to operators of nuclear power plants resulting from the Carbon Price Support Mechanism’, was not selected.
NC14, requiring the Chancellor to direct the OTS to report on the potential for the introduction of consolidated corporation tax filing for ‘UK-resident companies meeting the current definition of a group’, to include an assessment of ‘the potential cost savings for companies and HMRC and the potential for reducing tax avoidance’, was not called.
NC15, applying VAT at 5% to maintenance and home improvement work, was not selected.
NC16, applying a temporary reduction in the rate of VAT, was not selected.
An amendment requiring the Office of Budget Responsibility, in consultation with HMRC, to report on ‘the revenue of the 50% rate of income tax and its impact on the UK economy’, was defeated.
An amendment requiring the Treasury to report on the impact of current tax rates on inequality was not called.
An amendment providing for a £250 reduction in the tax liability of public sector employees with earnings of up to £21,000 was not called.
‘We do not see it as our role to direct the Office of Tax Simplification,’ said David Gauke, Exchequer Secretary to the Treasury in response to the proposed new clauses.
‘The office has done a lot of good work, but it is important that its independence is respected.’
He added that the OTS has looked at the various allowances and reliefs in the tax system and has concluded that ‘they are not areas where it wants to devote its efforts’.
The OTS would read the debate closely, however. ‘We are always keen to look at areas where we can improve the administration of the tax system, including [the] proposals in new clause 14 on consolidated filing,’ Gauke said.
Personalities
Nigel Mills, the Conservative MP for Amber Valley, moving the new clauses on capital allowances and corporation tax, said David Gauke had made ‘such a great start in tax simplification’ that he had ‘the honour of being named Tax Personality of the Year’.
‘We could start making various jokes about accountants’ personalities, but we would probably cause grave offence to all my former colleagues, so perhaps we should leave that subject,’ Mills suggested.
The Exchequer Secretary’s win at the recent LexisNexis Taxation Awards had escaped the notice of David Hanson, Labour MP for Delyn. Hanson offered ‘the official Opposition’s wholehearted congratulations’.
Gauke replied: ‘Some may think it a somewhat oxymoronic award, but I can tell the House that it has changed my life considerably.’
The House of Commons report stage continued yesterday. No amendments were made to the Finance Bill but there were some interesting exchanges on capital allowances and group filing for companies, and a surprise ‘impact assessment’ for the Tax Personality of the Year award.
A new clause (NC11), requiring the government to review tax measures applicable to those judged by regulators to engage in high cost credit lending, was defeated by 273 votes to 228 after almost three hours of debate.
NC12, requiring the Chancellor to direct the Office of Tax Simplification to consider options for simplifying or replacing the capital allowances regime, with a view to ensuring that businesses obtain tax relief for capital assets over a period ‘more closely matched to the full life of those assets’, was withdrawn.
NC13, requiring HM Treasury to recover through a windfall tax all ‘profits to operators of nuclear power plants resulting from the Carbon Price Support Mechanism’, was not selected.
NC14, requiring the Chancellor to direct the OTS to report on the potential for the introduction of consolidated corporation tax filing for ‘UK-resident companies meeting the current definition of a group’, to include an assessment of ‘the potential cost savings for companies and HMRC and the potential for reducing tax avoidance’, was not called.
NC15, applying VAT at 5% to maintenance and home improvement work, was not selected.
NC16, applying a temporary reduction in the rate of VAT, was not selected.
An amendment requiring the Office of Budget Responsibility, in consultation with HMRC, to report on ‘the revenue of the 50% rate of income tax and its impact on the UK economy’, was defeated.
An amendment requiring the Treasury to report on the impact of current tax rates on inequality was not called.
An amendment providing for a £250 reduction in the tax liability of public sector employees with earnings of up to £21,000 was not called.
‘We do not see it as our role to direct the Office of Tax Simplification,’ said David Gauke, Exchequer Secretary to the Treasury in response to the proposed new clauses.
‘The office has done a lot of good work, but it is important that its independence is respected.’
He added that the OTS has looked at the various allowances and reliefs in the tax system and has concluded that ‘they are not areas where it wants to devote its efforts’.
The OTS would read the debate closely, however. ‘We are always keen to look at areas where we can improve the administration of the tax system, including [the] proposals in new clause 14 on consolidated filing,’ Gauke said.
Personalities
Nigel Mills, the Conservative MP for Amber Valley, moving the new clauses on capital allowances and corporation tax, said David Gauke had made ‘such a great start in tax simplification’ that he had ‘the honour of being named Tax Personality of the Year’.
‘We could start making various jokes about accountants’ personalities, but we would probably cause grave offence to all my former colleagues, so perhaps we should leave that subject,’ Mills suggested.
The Exchequer Secretary’s win at the recent LexisNexis Taxation Awards had escaped the notice of David Hanson, Labour MP for Delyn. Hanson offered ‘the official Opposition’s wholehearted congratulations’.
Gauke replied: ‘Some may think it a somewhat oxymoronic award, but I can tell the House that it has changed my life considerably.’
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