Poll: Should this bill be passed into law?
As many are of the opinion, Aye (21)
45.65%
On the contrary, No (21)
45.65%
Abstain (4)
8.7%
This discussion is closed.
Birchington
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B800 - Corporation Tax (Amendment) Bill 2015, TSR Conservative Party
CORPORATION TAX (AMENDMENT) BILL 2015
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A bill to reduce the current level of corporate taxation for both large and small businesses.
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BE IT ENACTED by The Queen's most Excellent Majesty, by and with the advice and consent of the Commons in this present Parliament assembled, in accordance with the provisions of the Parliament Acts 1911 and 1949, and by the authority of the same, as follows:

1. DEFINITIONS
(1) 'Large businesses' shall be defined as those with annual revenue of equal to, or over £400,000.
(2) 'Small businesses' shall be defined as those with annual revenue of less than £400,000.
(3) 'Pre-tax profit' shall refer to the profit made by the business after all deductions except from corporation tax.
(4) 'Businesses' refer to limited companies, be they private or public.

2. BANDS OF CORPORATION TAX
(1) Two rates of corporation tax now apply.
(2) A "small profits rate" of corporation tax applies to small businesses, as defined above.
(3) A "main rate" of corporation tax applies to large businesses as defined above.

3. RATES OF CORPORATION TAX
(1) The "small profits rate" should now be set at 15% of pre-tax profits;
(2) and the "main rate" of corporation tax should be set at 17% of pre-tax profit.

4. CORPORATION TAX THRESHOLD
(1) A new threshold shall be formed below which no corporation tax is paid.
(2) This threshold shall apply to businesses that:
a) have no subsidiaries in the United Kingdom and;
i) have been formed for no more than one year as of the 1st April prior to their formation and
ii) have a annual pre-tax profit of less than £7,500.

5. CORPORATION TAX RELIEF
(1) Businesses in the manufacturing sector will hereby be exempt from corporation tax.

6. COMMENCEMENT, SHORT TITLE AND EXTENT.
(1) This Bill may be cited as the Corporation Tax (Amendment) Bill 2015.
(2) This Bill shall extend to the entire United Kingdom; and
(3) Shall come into force on 1st April 2016 following Royal Assent.


Notes
Spoiler:
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Sources:

https://www.gov.uk/government/upload...ember_2014.pdf
https://www.gov.uk/government/upload...al_release.pdf
THE BELOW FILE
http://www.ukpublicspending.co.uk/
http://www.ons.gov.uk/ons/rel/pnfc2/...s-q4-2014.html

Notes:

This bill hopes to reduce corporation tax rates for minimal relative cost (only 0.2% of UK public spending). This is in the hope of increasing the lifespan on new startup businesses, as well as to drive growth in private sector businesses. This will result in lower relative prices for UK families, reducing the cost of living, leading to reduced costs of welfare (currently standing at £111.7bn).

Reducing corporation tax will also have the effect of increasing the UK's GDP, powering growth in the economy, where reductions in public spending may have limited this. Current UK GDP growth has declined to 0.3% for Q1 2015, and it is undeniable that something has to be done to counteract this stalling of the economy.

It is also hoped that by decreasing corporation tax, SMEs will be able to employ more full-time workers, and large companies will be able to use temporary contracts as opposed to zero-hour contracts, which will provide relative job security for employees.

Making manufacturing industries exempt from corporation tax altogether will result in greater industrial automation and technologies, as well as attracting new manufacturers to the UK, which will further increase employment and the UK's GDP as a whole. The price of goods in the UK will decline as a result, due to the lower transportation costs for these goods.
COSTINGS
(1) Corporation tax revenues are currently £39.3bn. (2013-14)
(2) The reduction of the "small profits rate" to 15% will cost no more than £0.39bn. (6.6% of revenue is from businesses < £1m turnover)
(3) The reduction of the "main rate" to 17% will cost no more than £1.10bn. (93.4% of revenue is from businesses > £1m turnover)
(4) The introduction of the corporation tax threshold will cost a negligible amount (a maximum of £0.1bn).
(5) Removing corporation tax for manufacturers will cost (£554.3bn*10.9%)*20% = £12.08bn
(6) The total cost of this bill will be a maximum of £13.67bn.
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Saracen's Fez
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Woah, the formatting is all over the place.
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Aph
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Birchington could you correct the format?
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Birchington
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(Original post by Aph)
Birchington could you correct the format?
That should appear normally now. Please let me know.
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Saracen's Fez
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(Original post by Birchington)
That should appear normally now. Please let me know.
All good. :yy:
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James222
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Its very unique to TSR that opposition parties come out with detailed policy bills that should be proposed by the Secretary of State.

We have a similar bill the pipeline, the deficit must be a huge
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Jammy Duel
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(Original post by James222)
Its very unique to TSR that opposition parties come out with detailed policy bills that should be proposed by the Secretary of State.

We have a similar bill the pipeline, the deficit must be a huge
Well, the budget deficit sits at £76bn and then adjustments for anything already passed, with this it sits at up to £90bn and any other adjustments from other bills.
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James222
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(Original post by Jammy Duel)
Well, the budget deficit sits at £76bn and then adjustments for anything already passed, with this it sits at up to £90bn and any other adjustments from other bills.
Shouldnt the role of Opposition Parties be confined to proposing amendments ?

How exactly is a Minister suppose to implement a policy he doesnt agree with ? This happens all the time on here.
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Jammy Duel
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(Original post by James222)
Shouldnt the role of Opposition Parties be confined to proposing amendments ?

How exactly is a Minister suppose to implement a policy he doesnt agree with ? This happens all the time on here.
Because democracy says so. If opposition is limited to amendments then it would all just be done via PMBs instead.
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James222
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(Original post by Jammy Duel)
Because democracy says so. If opposition is limited to amendments then it would all just be done via PMBs instead.
I dont think its a question of Democracy just convention .

Opposition is suppose to hold govt accountable not plot mini coups to capture policy
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Jammy Duel
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(Original post by James222)
I dont think its a question of Democracy just convention .

Opposition is suppose to hold govt accountable not plot mini coups to capture policy
Is it really capturing policy to put forwards a bill that the government is unlikely to put forwards themselves?
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James222
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(Original post by Jammy Duel)
Is it really capturing policy to put forwards a bill that the government is unlikely to put forwards themselves?
I commend you for putting time and effort into writting this bill. I think its a good bill

I was just making a general observation at how frequently the goverment looses votes including previous terms

Edit 30/06/15 - I dont think its a good bill and I dont think manufacturing will take off just because of lower taxation, industrial policy is more complicated and the UK already has amongst the lowest corporate tax in the Developed World and all sorts of grants for manufacturing.
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Jammy Duel
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(Original post by James222)
I commend you for putting time and effort into writting this bill. I think its a good bill

I was just making a general observation at how frequently the goverment looses votes including previous terms
If the government loses votes on its policy is it not indicative of something?
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James222
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(Original post by Jammy Duel)
If the government loses votes on its policy is it not indicative of something?
I dont think so because Most MPs are happy to abstain or support bills proposed by other parties.

I think the convention should be only the Opposition can only sponsor VONC in the govt or amendments to bills.

Otherwise we end up with this peculiar system..
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Jammy Duel
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(Original post by James222)
I dont think so because Most MPs are happy to abstain or support bills proposed by other parties.

I think the convention should be only the Opposition can only sponsor VONC in the govt or amendments to bills.

Otherwise we end up with this peculiar system..
I would say that government bills not passing is indicative of one or more things:
1) that the house as a whole does not want it
2) members of the government disagree with their policy
3) the whips aren't doing a very good job
4) the government is weak
5) the bills are poor quality (which we are seeing a fair bit of these days, generally)
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James222
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(Original post by Jammy Duel)
I would say that government bills not passing is indicative of one or more things:
1) that the house as a whole does not want it
2) members of the government disagree with their policy
3) the whips aren't doing a very good job
4) the government is weak
5) the bills are poor quality (which we are seeing a fair bit of these days, generally)
I never said Govt Bills dont pass

I said opposition bills seeking to write policy that should be the reserve of the Minister is becoming more frequent.
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Saracen's Fez
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(Original post by James222)
I commend you for putting time and effort into writting this bill. I think its a good bill

I was just making a general observation at how frequently the goverment looses votes including previous terms
Just bear in mind that we have a minority government this term.
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Life_peer
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(Original post by James222)
I never said Govt Bills dont pass

I said opposition bills seeking to write policy that should be the reserve of the Minister is becoming more frequent.
I think you're quite missing the point of this MHoC. It is essentially a debate club with a few extra bits to make it more interesting.
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KingStannis
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(Original post by James222)
I dont think so because Most MPs are happy to abstain or support bills proposed by other parties.

I think the convention should be only the Opposition can only sponsor VONC in the govt or amendments to bills.

Otherwise we end up with this peculiar system..
This really confused me too, I assumed it was because we're a minority government?

Regardless, we're all here to have fun anyway so meh.
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KingStannis
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I think this is a good bill and in principle aye it, however green pink has voted against. I'll ask her why before voting, as this bill affects the budget.
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