Key Facts

• The amendment would require a Government review within six months of Royal Assent.
• The review must consider the impact on taxation revenue and different income levels.
• The review will examine effects on households below average income and high-net worth individuals.
• Income tax raised more than £190 billion in 2018-19.
• Clauses 2 and 3 set income tax rates at 20%, 40%, and 45% for basic, higher, and additional rates respectively.
• Clause 4 maintains the starting rate limit for savings at £5,000 for the 2020-21 tax year.
• Approximately 95% of savers will pay no tax on their savings income in 2020-21.
• The Resolution Foundation estimates GDP will contract between 10% and 24% due to the outbreak of covid-19.
• Over the past 10 years, the poorest 10% of households have lost 11% of their income since 2010; for households with children, this rises to 20%.
• Ethnic minority households will be more adversely affected by policy changes than white households, with an average loss above 5% of net income for black households, compared to about £1,000 for non-disabled families.
• The Finance Bill Committee met physically without remote options.
• There are concerns about health risks due to close contact during long meetings.
• The MP highlights longstanding economic inequalities affecting women, ethnic minorities, and disabled people.
• Amendments will be tabled focusing on equality, the environment, and fairness.
• Corporation tax rate has been maintained at 19%.
• The Government initially planned to reduce it further but backtracked.
• The current rate is lower than that of many advanced economies according to Resolution Foundation.
• Cutting corporation tax was intended to provide £6 billion for the NHS.
• There are concerns about the impact on Treasury revenues due to businesses struggling during the pandemic.
• Corporation tax rate remains at 19% instead of reducing to 17%.
• Clauses 5 and 6 of the Finance Bill legislate for this change in rate.
• Additional tax receipts forecasted to raise about £33 billion across the forecast period.
• R&D expenditure credit increased from 12% to 13%.
• Relief for business investment in non-residential structures and buildings increased from 2% to 3%.
• 15.8 million women are currently employed, a record high.
• Wages of the lowest earners have risen by 11% more than inflation over four years.
• The statement covers provisions for car tax in the Finance Bill for the tax year 2020-21 onwards.
• Clauses related to determining appropriate percentages for cars are under discussion.
• CCT rates will be extended until April 2025.
• WLTP is used for new cars first registered after April 6, 2020.
• There are around 900,000 company car drivers in the UK.
• The benefit raises approximately £2.3 billion per annum.
• NEDC procedure applies to cars first registered before April 6, 2020.
• Clause 10 exempts care leavers’ apprenticeship bursary payments from income tax.
• Care leavers aged 16 to 24 in England receive a £1,000 bursary for starting an apprenticeship.
• The clause ensures that care leavers can benefit by the full amount of the bursary without any deductions.
• Coronavirus could significantly affect the number of apprenticeships available.
• The minimum wage rate for apprenticeships is considered staggeringly low.
• The Government has been leaning into the issue through the levy.
• The amendment seeks to exempt all social security benefits from income tax.
• Exempting taxable social security benefits would cost around £5.9 billion in 2020-21, with 95% attributable to the state pension.
• Only new Scottish benefits that top up or replace an existing taxable benefit will be liable for tax under the fiscal framework agreement.