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Saracen's Fez
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B1440 – Finance Bill 2018, TSR Government


An Act 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. Amendment to B1386
(1) Section 4.4 of B1386 is hereby repealed and replaced with the following;
(i) "From the 1st April 2019 Value Added Tax is hereby levied on all psychoactive substances at the standard rate."
(2) Section 5.3 of B1386 is hereby repealed and replaced with the following;
(i) "This Bill shall come into force on 1st April 2019".

2. Narcotic Import Duty
(1) Import Duties are hereby charged for all Class B narcotics as defined by B1386 from 1st April 2019 .
(2) The import duty on the aforementioned class B narcotics will be set at 100%.

3. Vehicle Excise Duty Amendment
(1) An additional rate of Vehicle Excise Duty is hereby charged from 1st April 2019.
(2) This additional rate of Vehicle Excise Duty will be charged a level of 150% per vehicle
(3) The additional rate of Vehicle Excise Duty shall hereby be levied on households with two or more vehicles.

4. Mansion Tax
(1) A levy on the value of properties exceeding £1m will be charged from 1st April 2019.
(2) This levy will be set at a rate of 1% of the property value

5. Income Tax
(1) From the 1st April 2019 the thresholds for income tax rates shall hereby be set at;
(i) The basic rate threshold for Income Tax shall hereby be £20,000
(ii) The Higher rate threshold for Income Tax shall hereby be £50,000
(iii) The Additional rate threshold for Income Tax shall hereby be £150,000.

6. Winter Fuel Payments
(1) From 1st April 2019 winter fuel payments are hereby abolished.

7. Clean Air Fund
(1) From 1st April 2019 the clean air fund is hereby abolished

8. 2018 Budget Reversals
(1) The lifting of the cap on local authority borrowing from the 1st April 2019 is hereby abolished.
(2) The Digital Revenues Tax to be levied from the 1st April 2019 is hereby abolished.
(3) The restriction on fixed term betting terminals to £2 from the 1st April 2019 is hereby abolished.
(4) The freeze on alcohol duty from the 1st April 2019 is hereby abolished.

9. Commencement, Extent and Short Title
(1) This bill shall come into force on 1st April 2019.
(2) This bill shall extend to the whole of the United Kingdom.
(3) This bill shall hereby be cited as the Finance Act 2018.

Notes - Changes from the primary Budget Report
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The Budget for the 27th parliament (link at the bottom of the notes) set out a number of policy measures, some of which require primary legislation. This Finance Bill outlines and places into law, many of those policies.

B1425 and B1428
B1425 and B1428 have passed division and required no amendment. They did not require further legislation.

B1386 Amendments
The 27th Parliament Budget made two key changes to B1386 (a bill which granted de facto legalisation of class B narcotics), namely that it brought forward the implementation of this act and also that it levied an import duty onto the newly defined class B narcotics.

Section 1 amends B1386 in order that from the 1st April 2019 VAT is levied with estimated revenues of £0.6bn per annum.
Section 2 imposes a statutory levy in order that an import duty of 100% is levied with estimated revenues of £1.1bn per annum.

Vehicle Excise Duty Additional Rate
The 27th parliament Budget made a key change to current vehicle excise duty by imposing an additional rate on households with two or more vehicles (levied per vehicle).

Section 3 imposes an additional 150% rate of Vehicle Excise Duty on households with two or more vehicles from 1st April 2019. This generates an estimated £1.8bn per annum.

Corporation Tax - The change to forecast corporation tax changes (a freeze rather than reduction) is abolished. Canon will grant a costed reduction.

Spending Motion to come..

Department for Communities and Local Government (reduction in budget of 0.2bn)
License Fee Contribution
NHS 2% Increase
2018 Budget reversals
Increases to Defense and Infrastructure budgets

Note

Pensions Act to be brought forward in early 2019 enacting changes to employer contribution
Foreign Aid act to be brought forward in early 2019 withdrawing UK from relevant international treaty
NHS Act to be brought forward in early 2019 to enact outpatient reforms
Sovereign Wealth Act to be brought forward in early 2019 to enact SWF, BBB and AF.

A second reading of the Finance Bill and accompanying Spending Motion will be issued on Tuesday 4th December.

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CatusStarbright
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I'm confused as to what 1(1) actually does in light of the 1(2) amendment.
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Rakas21
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(Original post by CatusStarbright)
I'm confused as to what 1(1) actually does in light of the 1(2) amendment.
1.1 amends 4.4 which declares currently that vat will be levied.

1.2 amends 5.3 which currently enacts section 4 in 5 years.
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CatusStarbright
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(Original post by Rakas21)
1.1 amends 4.4 which declares currently that vat will be levied.

1.2 amends 5.3 which currently enacts section 4 in 5 years.
Yeah I got that, but how does 1(1) change the effect of 4(4) in light of the amendment to 5(3)?
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Rakas21
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(Original post by CatusStarbright)
Yeah I got that, but how does 1(1) change the effect of 4(4) in light of the amendment to 5(3)?
It makes it more specific and worded like it should have been. Preference i admit.
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CatusStarbright
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(Original post by Rakas21)
It makes it more specific and worded like it should have been. Preference i admit.
No that's fine, I was just making sure I wasn't missing anything important.
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Connor27
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Look, I’m very relieved to see the government has reversed their appalling policy of cancelling the planned corporation tax cut; however, I am still not fully at ease with policies such as the mansion tax and the third vehicle tax.

The additional rate of income tax threshold change also seems to have disappeared from what I can see? You have it at the RL figure of 150,000 in this bill but stated an intent to change it to 70,000 in the budget; yet this amendment from the budget is not mentioned in the “changes” section in the notes as far as I can see...

I will consider my vote on this over the coming days and watch the debate on these revised proposals carefully.
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Connor27
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Rakas21 can you confirm that the income tax figures in this finance bill are a u-turn from those proposed in the budget and are therefore not a mistake?

If this is the case, why were these significant changes not mentioned in the notes of the finance bill?
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Rakas21
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(Original post by Connor27)
Rakas21 can you confirm that the income tax figures in this finance bill are a u-turn from those proposed in the budget and are therefore not a mistake?

If this is the case, why were these significant changes not mentioned in the notes of the finance bill?
Some policy decisions were reevaluated slightly based on the percieved costing model. Full details, notes and new costings will be made available to the House tomorrow.
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Saunders16
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This is better than I expected but there is more I am concerned about than support; I am also disappointed to see that the cut in corporation tax will now be going ahead.
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Jammy Duel
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(Original post by Rakas21)
1.1 amends 4.4 which declares currently that vat will be levied.

1.2 amends 5.3 which currently enacts section 4 in 5 years.
So what happened to no finance bill until the budget debate was over?
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Jammy Duel
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Let's go for a little creep through

-The income tax change still costs £38bn
-As explained in the budget "debate" the VED changes are merely a cash grab that squeezes the middle for having the audacity to have a job that is not in their immediate area
-The manison tax is an abomination to conservatism
-It's worth noting that 8(4) does absolutely nothing, also that 8(1) could be argued to mean that local authorities are not allowed to borrow at all
-Where are the costings, this is a bill that, as it stands, costs somewhere in the region of £25-30bn, it seems the Chancellor hasn't even tried to cost it.
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Mr T 999
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Improvement from the budget however I'm against the mansion tax and ved changes. Nay
Last edited by Mr T 999; 10 months ago
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Rakas21
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(Original post by Jammy Duel)
Let's go for a little creep through

-The income tax change still costs £38bn
-As explained in the budget "debate" the VED changes are merely a cash grab that squeezes the middle for having the audacity to have a job that is not in their immediate area
-The manison tax is an abomination to conservatism
-It's worth noting that 8(4) does absolutely nothing, also that 8(1) could be argued to mean that local authorities are not allowed to borrow at all
-Where are the costings, this is a bill that, as it stands, costs somewhere in the region of £25-30bn, it seems the Chancellor hasn't even tried to cost it.
With regards to 8.4 my reading a few weeks ago suggested that there is an escalator which increases the price at CPI+2% unless otherwise stated. This is what the treasury predicts cost against (and therefore for my purposes saving). I will however amend the wording in addition to the wording for 8.1.

Not so, i was as i mentioned delayed a tad and with the squeezed schedule put this out first. The second reading and spending motion tonight are both fully costed in addition to the spreadsheet, taking on board much of what you said in the budget replies.
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Saracen's Fez
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This bill has gone to a second reading.
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