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Finance (No.2) Act 2013-14

Royal Assent

Summary

  • Bill status:

    Bill is now an Act

  • Type of Bill:

    Government Bill

Sponsors:

Last event

  • Royal Assent Royal Assent

    17 Jul 2013

    The Bill received royal assent to become the Finance Act 2013.

Summary

A Bill to enact the measures announced in the Budget of 20 March 2013, including changes to the income tax threshold, national insurance contributions and personal tax allowances.

The Bill will enact the measures announced in the Budget of 20 March 2013.

In his Budget statement of 20 March 2013, Chancellor George Osborne announced that the government will:

  • Increase income tax personal allowances by a further £560 to £10,000 in 2014-15.

  • Introduce a new £2,000 Employment Allowance to reduce employer National Insurance contributions (NICs) for all businesses.

  • Implement the £72,000 cap on social care costs, outlined by the Dilnot Commission, from April 2016.

  • Create a new housing scheme, Help to Buy, which will extend First Buy to new home owners and create a mortgage guarantee for lenders who offer mortgages to buyers on homes up to the value of £600,000.

  • Offer guarantees for £130bn worth of mortgages, available from 2014, running for a period of three years.
  • Bring forward the new single-tier State Pension to 2016.

  • Introduce growth vouchers for small businesses, doubling to £10,000 the size of the loans that employers can offer tax-free to pay for items such as season tickets for commuters.

  • Provide twenty per cent of working families' childcare costs, up to £1,200 off the first £6,000, for each child under their new 'Tax-Free Childcare Scheme'.

  • Extend the one per cent cap on public sector pay to 2015-16, with the military exempt from the cap.

  • Cancel the proposed fuel duty increase that was planned for 1 September 2013, in order to support households and businesses.

  • Reduce beer duty by two per cent from 25 March 2013.

Despite being opposed by Labour at third reading, the Finance Bill passed its remaining stages in the Commons. During its remaining stages, Labour saw amendments calling for government reports on the additional rate of income tax, detailing the beneficiaries of the abolition of the stamp duty reserve tax and the operation of the interaction of REITs with the housing market were rejected.  Former minister Tim Loughton's widely reported amendment seeking a tax incentive for married couples was not pushed to the vote whilst government amendments relating to the REIT industry, interim taxation payments, inheritance tax and employee share schemes were agreed.

The Finance Bill went through the final three stages in the Lords, with its second reading having taken place on 15 July 2013. It also passed through committee stage and as the House of Lords cannot amend Money Bills, the third reading was just a formality.