The government is today publishing the Finance (No. 3) Bill which will enact tax measures announced in last week’s Budget and in the June 2010 Budget.
The Bill includes a number of measures which will help to promote growth and fairness:
- increasing the income tax personal allowance by £1,000
- cutting fuel duty rates by 1p
- cutting corporation tax rates to 26% this year and 25% in 2012
Other measures brought in by the Bill form a key part of the government’s strategy to tackle tax avoidance and will raise around £4bn over the current Parliament.
The government confirmed its commitment to a new approach to tax policy making in December 2010. Today’s Bill is the first to reflect the principles set out in the accompanying document, Tax policy making: a new approach. In line with the government’s commitment to restoring the UK tax system’s reputation for predictability, and improving scrutiny, draft legislation for 50 out of 91 of the Bill’s clauses was published for consultation. Over 250 substantive responses were received and considered.
The government is also publishing today its final Tax Consultation Framework, which was published in draft in December 2010. This has been revised to reflect comments received from interested parties.
To help interested parties manage their engagement with the government on future consultations, the government is also updating its Tax Consultation Tracker. This sets out in one place the government’s planned consultations on tax issues, including specific anticipated launch dates wherever possible.
The Exchequer Secretary, David Gauke MP, said:
The Finance Bill demonstrates the government’s commitment to promoting growth and fairness. Its measures improve the tax system for both business and citizens and tackle tax avoidance by those who seek to gain an unfair advantage over others. It also acts as an example of the way in which we aim to bring in changes to the tax system in future to ensure greater predictability, stability and simplicity.
Notes for Editors
The Bill is formally known as Finance (No. 3) Bill as it is the third Finance Bill of the current Parliamentary session. On Royal Assent it will become Finance Act 2011.
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 http://services.parliament.uk/bills/2010-11/financeno3.html 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 and is available on the HM Treasury website.
The Tax Consultation Framework and Tax Consultation Tracker are published on the HM Treasury website http://www.hm-treasury.gov.uk/consultations_upcoming.htm
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