The Government is today publishing the Finance Bill, The Bill includes measures which support growth and enterprise, help working families, and ensure that everyone pays their fair share of tax:
- increasing the tax-free personal allowance to £9,440 from April 2013, the biggest ever cash increase
- reducing the main rate of corporation tax to 21% in 2014, and to 20% in 2015 - the joint lowest in the G20
- introducing an “above the line” tax credit for large company R&D investment, and reliefs for the animation and high-end TV industries that are among the most generous in the world
- implementing a major package of measures to tackle tax avoidance and evasion, including the UK’s first General Anti-Abuse Rule (GAAR)
- introducing measures for the Government to sign contracts providing certainty over decommissioning relief on the UK Continental Shelf, unlocking billions of pounds of additional investment
This Bill demonstrates the Government’s continued commitment to unprecedented levels of consultation and scrutiny in tax policy-making, in line with the 2010 document, Tax policy making, a new approach. The majority of the measures in this year’s Bill were announced at Budget 2012, with legislation published in December 2012 for technical consultation, receiving over 250 comments.
Following consultation on draft secondary legislation in December, Finance Bill 2013 will also legislate to ensure those receiving the new Personal Independence Payment (PIP) and Armed Forces Independence Payment (AFIP) qualify for the relevant insurance premium tax relief.
Exchequer Secretary to the Treasury, David Gauke MP, said:
This year’s Finance Bill demonstrates the Coalition Government’s commitment to creating a tax system that is fairer, promotes growth and competitiveness and rewards work. These measures will equip us to compete in the global race and create an aspiration nation. They also demonstrate the Government’s commitment to developing tax policy in a transparent manner, consulting wherever possible, which is reflected in the many constructive comments we have had on the draft legislation.
Notes for Editors
The Bill is formally known as Finance (No.2) Bill as it is the second Finance Bill of the current Parliamentary session. On Royal Assent it will become Finance Act 2013.
More detailed Explanatory Notes on clauses are available from Stationery Office bookshops and also on HM Treasury website.
Further details on the Bill will be published on the Parliament website (opens in new browser window) and HM Treasury and HM Revenue & Customs websites as the Bill progresses through Parliament.
The new approach to tax policy making: a response to the consultation was published on 9 December 2010.
The Explanatory Notes are published on this website.