B1440 – Finance Bill 2018 (Second Reading)

Watch
This discussion is closed.
Saracen's Fez
Badges: 20
Rep:
?
#1
Report Thread starter 1 year ago
#1
B1440 – Finance Bill 2018 (Second Reading), TSR Government
Image

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(1) Section 4.4 of B1386 is hereby repealed and replaced with the following;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(2) Section 5.3 of B1386 is hereby repealed and replaced with the following;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) Exemption shall be granted for disabled households.

4. Property 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
(3) Exemption shall be granted for households in which nobody is in employment.

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 £15,000
(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 for the purpose of house-building 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.
(i) From the 1st April 2019, Alcohol duty will be rise by CPI+2% and in each subsequent year.

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
Spoiler:
Show
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 £0.9bn per annum. The number of households made exempt is estimated to be around 15%.

Corporation Tax
The change to forecast corporation tax changes (a freeze rather than reduction) is abolished.

Property Tax
The 27th parliament Budget made a key decision to shift taxation away from incomes and towards the property of rich individuals.

Section 4 imposes a levy of 1% on the value of properties above £1m at an estimated benefit to the taxpayer of £8.1bn per annum. The estimated number of non-employed households made exempt is estimated to be 39%.

Income Tax
The 27th parliament budget made two key decisions when it came to Income Tax. Firstly it increased the basic rate threshold to £25000 and secondly it reduced the additional rate threshold to £70,000.

The change to the additional rate threshold is abolished (it remains at £150,000).
The change to the basic rate threshold is set at £15,000.

Section 5 outlines a change to increasing the basic rate threshold to just £20,000 in order to account for reduced cost. Increasing the basic rate threshold to £15,000 is expected to cost the taxpayer £16bn per annum.

Tax Abolition
The 27th parliament budget outlined a number of tax abolition in a bid to simplify the UK's tax code. With the reform of income taxation this is no longer deemed afforable.

The abolition of the insurance premium tax, air passenger duty, the climate change levy, the banking levy and banking surcharge are hereby abolished.

Winter Fuel Payments
The 27th parliament budget made key spending decisions and one of those was the abolition of the winter fuel payment in light of firstly the expense and secondly the fact that pensioners see significant pension increases per annum due to the triple lock.

Section 6 outlines the abolition of the winter fuel payment.

Clean Air Fund
The 27th parliament budget made key spending decisions, one of which was to abolish the clean air fund as a measure deemed insufficient and reduce the department for communities and local government budget by £0.2bn.

Section 7 outlines the abolition of the clean air fund while the spending motion will move for consent to reduce the communities and local government budget.

Budget Reversals
The 27th parliament budget made several key changes to those announced in the 2018 RL budget.

Section 8 essentially repeals these ideas before canon brings them into law.

Outpatient Reforms
The 27th parliament proposed to make outpatient medical insurance mandatory with an employer-employee contribution and as such, a cut in current health spending. It has been judged that this is an insufficiently developed idea.

The Outpatient Reform is hereby abolished.

..

A spending motion will be released concurrently to this second reading of the 2018 Finance Bill.

The following items will be brought forward early in the 28th parliament.

- BBC Act to be brought forward in early 2019 removing the license fee and enacting the model of future funding.
- 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
- Sovereign Wealth Act to be brought forward in early 2019 to enact SWF, BBB and AF.

The effect of this Finance Act on its own is to increase the deficit by £2.7bn in the 2019-2020 financial year however that is offset by the measures to be brought forward in addition to the Spending Motion.

The total costings for the 2018 budget are linked below (Tab 3) with the deficit figures most notable below..

2019-2020: -£2.3bn (-0.1% GDP)
2020-2021: +£9.6bn (+0.4% GDP)
2021-2022: +£22.2 (+0.9% GDP)
2022-2023: +£38.4 (+1.5% GDP)
2023-2024: +£56.6 (+2.2% GDP)

https://docs.google.com/spreadsheets...it?usp=sharing

Link to 2018 Budget Below..

https://docs.google.com/document/d/1...it?usp=sharing


Change For Second ReadingAddition of 3.4.
Spoiler:
Show
Amendment to title of section 4.
Addition of 4.3.
Amendment to wording of 8.1 and 8.4.
Amended Notes Section.

0
Rakas21
Badges: 21
Rep:
?
#2
Report 1 year ago
#2
Aye.
0
Mr T 999
Badges: 21
Rep:
?
#3
Report 1 year ago
#3
Nay
0
Rakas21
Badges: 21
Rep:
?
#4
Report 1 year ago
#4
(Original post by mr T 999)
Nay
Any particular measures.
0
Mr Eurosceptic
Badges: 4
Rep:
?
#5
Report 1 year ago
#5
(Original post by Rakas21)
Aye.
Are you for real? Just take the property tax implementation. It's so dreadfully done.

Who determines how much a house is valued at? What will you do if estate agencies gang up to undervalue houses on purpose to protect their wealth clients?

At the moment, wealth individuals can own two houses and choose which is their legal address (it's the principle MPs used in the expenses scandal). A wealth person could buy a million pound mansion and a semi-detached. They make the semi-detached their legal address so in the eyes of the law 'no body is in employment' in the manision. They avoid the tax.


Because nothing is defined, the tax is incurred by everything. Let's take Apple's planned new UK headquarters. The cost of the property is at least £10bn. The headquarters don't take up the whole building but nothing about area used is included in the bill. I am simply taking the literal translation as courts would. You are charging Apple an extra £100m a year in tax. They're a big company though so it's fine.

Again, becaus e'property' hasn't exactly been expanded on, you could argue a millionaire in an expensive flat in the Shard pays the tax based on the value of the Shard itself, not the cost of the flat.

Oh, even mroe stupidly, because the exemption on the unemployed only applies to households, the unemployed living in expensive flats still pay the tax.

Moving on to the car taxes. What's to stop someone registering their car with a different address? I.e. it's currently acceptable to put your address down as anything. If I register a car to me and put my address down for the purposes of taxing that car as something else, say I used my grandparent's house, that would be perfectly legal and my household would only have two cars. What a dumb loophole! Even worse, the wealthy - who you so desperatley claim will be targetted by this tax anyone - probably have more than one house so they can just rejig around where their cars are registered to avoid the tax.

How can a bill so dumb pass quality control?

Do the honourable thing and withdraw these section until full bills can be published next term.
0
Mr T 999
Badges: 21
Rep:
?
#6
Report 1 year ago
#6
(Original post by Rakas21)
Any particular measures.
I'm against the property tax and ved changes. Most of what you are trying to achieve cannot be achieved in a small section of a budget its best to have them individually, they are too big of a change to be achieved like this.
0
Jammy Duel
  • Political Ambassador
Badges: 21
Rep:
?
#7
Report 1 year ago
#7
Not a single issue from the first reading has been resolved, this finance bill still more than doubles the deficit along with having abominable taxes such as the mansion tax, and taxes to squeeze the middle class such as the VED changes that punish people for working.
0
Rakas21
Badges: 21
Rep:
?
#8
Report 1 year ago
#8
With regards to your concern over car travel there are a couple of points to make. The first is that according to the link provided by Jammy only 28% of households have two vehicles and only 7% have three. The second is that the disabled households are exempt. The third is that this is an additional ~£130-195 per household affected per year so the impact for most people will be relatively minimal. Finally, the poorest families tend not to have multiple vehicles. This will primarily impact the middle classes who can bear this burden for the good of the nations finances and to encourage sustainability.

Tax abolition has been abolished.

While there is a long held view (primarily from pre-coalition days) that pensioners are the poorest people in society facing a choice between eating and heating that is no longer true with the triple lock ensuring excessive rises in pensions each year. With this in mind, targetted additional funds are no longer needed.

The Clean Air fund is a small peicemeal grant not actually inteded to do all that much. I have abolished it because such things exist to do nothing more than make governments look good to environmentalists. The infrastructure investment coming from this budget will do far more for sustainability than this fund will.

Thanks to a re-evaluation of costing the BBC change will from 2021 have no impact on the Exchequer and such this policy can be considered as being pushed into next term and should no longer be an issue.

Outpatient reforms are abolished for now.

Regarding the pensions aspect this proposal essentially removes the government contribution in the form of tax relief and increases employer contributions to workplace pensions by 2% to more than compensate.

With regards to revoking the local housing cap our plans for housing will indeed be a core part of our additional infrastructure spending.

With regards to fixed odds, people should have the right to spend their money as they wish if it does no harm to wider society. Also as somebody that played on such machines, they were fun.


(Original post by Saunders)
QFA
Last edited by Rakas21; 1 year ago
0
Rakas21
Badges: 21
Rep:
?
#9
Report 1 year ago
#9
(Original post by Jammy Duel)
Not a single issue from the first reading has been resolved, this finance bill still more than doubles the deficit along with having abominable taxes such as the mansion tax, and taxes to squeeze the middle class such as the VED changes that punish people for working.
With regards to your comment the only cost in this finance bill is the increase in the tax threshold which even in itself could not double the deficit. Please review the updating costings spreadsheet.
0
Jammy Duel
  • Political Ambassador
Badges: 21
Rep:
?
#10
Report 1 year ago
#10
(Original post by Rakas21)
With regards to your comment the only cost in this finance bill is the increase in the tax threshold which even in itself could not double the deficit. Please review the updating costings spreadsheet.
Okay Diane, pray tell how does a £30bn cost does not double a £30bn deficit?
0
Rakas21
Badges: 21
Rep:
?
#11
Report 1 year ago
#11
(Original post by Jammy Duel)
Okay Diane, pray tell how does a £30bn cost does not double a £30bn deficit?
Increase is to 15 now rather than 20.
0
Saracen's Fez
Badges: 20
Rep:
?
#12
Report Thread starter 1 year ago
#12
Division! Clear the lobbies!
0
X
new posts
Back
to top
Latest
My Feed

See more of what you like on
The Student Room

You can personalise what you see on TSR. Tell us a little about yourself to get started.

Personalise

Current uni students - are you thinking of dropping out of university?

Yes, I'm seriously considering dropping out (103)
13.22%
I'm not sure (34)
4.36%
No, I'm going to stick it out for now (241)
30.94%
I have already dropped out (19)
2.44%
I'm not a current university student (382)
49.04%

Watched Threads

View All
Latest
My Feed