B1043 – Finance Bill 2016

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    B1043 – Finance Bill 2016, TSR Government
    A

    B I L L

    TO

    Grant certain duties, to alter other duties, and to amend the law relating to the National Debt and the Public Revenue, and to make further provision in connection with finance.

    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. For the purposes of this bill -
        1. First Time Buyer refers to an individual that does not own, and never has owned, interest in land in the United Kingdom or in any other country.
        2. VAT refers to Value Added Tax.
        3. Energy Bill refers to expenses paid for by households for the provision of energy in the form of electricity or gas.
    2. Income Tax
      1. Income Tax is charged for the tax year 2016-17.
      2. For that tax year -
        1. The Personal Allowance shall be set at £11,000 per annum.
        2. The Lower Rate, charged on additional earnings up to £4,000 above the Personal Allowance, shall be 10%.
        3. The Basic Rate, charged on additional earnings up to £35,000 above the Lower Rate, shall be 20%.
        4. The Additional Rate, charged on any additional earnings above the Basic Rate, shall be 45%.
    3. Corporation Tax
      1. Corporation tax shall be charged for the financial year 2016.
      2. For that year the main rate of corporation tax shall be 20%.
    4. Bank Levy
      1. Schedule 19 of the Finance Act 2011 is hereby repealed.
    5. Value Added Tax
      1. The main rate of VAT shall be 20%.
      2. Energy Bills are exempt from VAT.
    6. Stamp Duty
      1. The First Time Buyer allowance shall be set at £675,000.
    7. Commencement, short title and extent
      1. This Bill may be cited as the Finance Act 2016
      2. This bill shall extend to the United Kingdom; and
      3. Shall come into force immediately following Royal Assent.


    Notes
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    This bill makes changes to public taxation as set out in the Budget.

    The Income Tax brackets have been changed, and in addition, a new "Lower Rate" of 10% introduced on earnings higher than the Personal Allowance up to £15,000, giving a tax cut to the working class that is more fiscally prudent than a flat out increase in the Personal Allowance. We will also look at merging NICs with Income Tax in the future for a more progressive personal taxation system.

    The Bank Levy is abolished, as it targets the balance sheet of banks rather than the profits they make, and with little evidence that it reduces systemic risk in the UK banking system, serve as an unnecessary obstacle to the UK's competitiveness as a global capital for finance.

    First Time Buyers benefit by a separate threshold of £675,000 for their first property purchase. This reduces the costs of a house purchase by thousands, making it ever more affordable to own your own home. Energy bills are also exempt from VAT to reduce household expenses on one of the most vital costs of living.

    Revenue projections from changes to taxation can be found in the budget spreadsheet.
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    I maintain my disappointment in the tax hikes.
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    Aye.
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    Aye
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    Aye.
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    Many of the measures in this Finance Bill seem eminently reasonable. However, I see no particular reason for the first time buyer allowance to be set at such a high rate, which is far above what an average Briton will be spending (with a average first home price of less than half the allowance at £308k). I do not see why the government should be subsidising the purchase of flashy homes for the fortunate. Furthermore, I do not see how this policy leads to an increase - of a 40% magnitude no less! - of annual public income deriving from stamp duty. Am I missing something here?
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    Aye.
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    (Original post by TheDefiniteArticle)
    Many of the measures in this Finance Bill seem eminently reasonable. However, I see no particular reason for the first time buyer allowance to be set at such a high rate, which is far above what an average Briton will be spending (with a average first home price of less than half the allowance at £308k). I do not see why the government should be subsidising the purchase of flashy homes for the fortunate. Furthermore, I do not see how this policy leads to an increase - of a 40% magnitude no less! - of annual public income deriving from stamp duty. Am I missing something here?
    I find it odd that the average first home would cost more than the average home, and my quick bit of research suggests the hunch true, with the average first time buyer looking at not even 200k, not 308k

    Perhaps the more pertinent thing to say though is that depending on specific wording of supporting documents it's actually on properties up to a little over £6m stamp duty free

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    (Original post by Jammy Duel)
    I find it odd that the average first home would cost more than the average home, and my quick bit of research suggests the hunch true, with the average first time buyer looking at not even 200k, not 308k

    Perhaps the more pertinent thing to say though is that depending on specific wording of supporting documents it's actually on properties up to a little over £6m stamp duty free

    Posted from TSR Mobile
    Ah, I'm using a figure for average asking price, nvm https://www.theguardian.com/business...let-stamp-duty

    still, that makes my point even more relevant, jeezus

    and yes, I'll pretend I made that second point
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    This is what you couldn't do whilst TF was on holiday? You guys must have been completely crippled without him.
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    Abstain, there's nothing in this that makes me feel strongly enough to vote aye or nay tbh.
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    (Original post by cranbrook_aspie)
    Abstain, there's nothing in this that makes me feel strongly enough to vote aye or nay tbh.
    and me.
    abstain
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    Aye - nothing too unreasonable in here.
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    Nay. Aside from zero rating energy bills this is a very poor budget. We will keep fuel duty the same whilst increasing rail fares above inflation, we continue with savage budget cuts to local government so that social care is inadequately funded. We allow Mrs Trump or Daesh sympathisers to buy a flat in many parts of London with no stamp duty, as we cannot prove they own no land elsewhere. Nothing to tackle cheap booze in supermarkets. I will spare the House the many other actions missing.*
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    I think this should be applying to the 2017-2018 financial year surely? Because we are already in the 16-17 one. Either that or we need to re-define the tax year in TSR.

    Anyway nay for the following:
    1) you have cut tax paid by the richest in society.
    2) you haven't cut tax for the very poorest in society.
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    (Original post by Aph)
    I think this should be applying to the 2017-2018 financial year surely? Because we are already in the 16-17 one. Either that or we need to re-define the tax year in TSR.

    Anyway nay for the following:
    1) you have cut tax paid by the richest in society.
    2) you haven't cut tax for the very poorest in society.
    Which budget are you looking at?

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    (Original post by Jammy Duel)
    Which budget are you looking at?

    Posted from TSR Mobile
    This one...
    Against the very poorest the poorest 6% are still paying the same amount of tax (national Insurance) and for the poorest 10% if you compare it to the 16-17 budget only gain £16 a year.
    But compared to 17-18 they are loosing on average £12 a year.

    As for the fact that it's a tax deduction I've created this graph.
    Only those earning between £86000 & £104,666.67 are paying more income tax.
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    (Original post by Aph)
    This one...
    Against the very poorest the poorest 6% are still paying the same amount of tax (national Insurance) and for the poorest 10% if you compare it to the 16-17 budget only gain £16 a year.
    But compared to 16-17 they are loosing on average £12 a year.

    As for the fact that it's a tax deduction I've created this graph.
    Only those earning between £86000 & £104,666.67 are paying more income tax.
    Ummm, how can something be both an increase and a decrease?

    Further, your graph is literally useless, I really do not want to be spending ages trying to get my head around what you're actually trying to show.
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    I hope we vote against this Finance Bill. Can the government advise if they are willing to make any amendments, and whether or not the Chancellor of the Exchequer will resign if this Bill is defeated?

    Incidentally the impact of the Sustainability Incentives Act 2016 has not been considered in the financial projections. Most of the budget income is based on the RL Tory Chancellor Gideon Osborne's figures which have consistently been optimistic and are pre-Brexit vote.
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    (Original post by Jammy Duel)
    Ummm, how can something be both an increase and a decrease?

    Further, your graph is literally useless, I really do not want to be spending ages trying to get my head around what you're actually trying to show.
    Different tax years...

    And it's showing income kept as a percentage against income paid. It isn't that hard.
 
 
 
Updated: September 18, 2016
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