The Finance Bill which will enact policy announced in June’s emergency budget is being debated in the House of Commons this afternoon.
The Finance (No.2) Bill provides the legal basis for the emergency budget announced by the Chancellor George Osborne in June.
Some of the measure in the budget such as increasing Capital Gains Tax to 28 per cent for anyone earning above the basic rate of income tax are already in force.
This Bill, among other things, will bring the penalties for not making returns on VAT and other taxes in line with other charges being made by HMRC.
Currently a first default, and in the case of businesses with a turnover of less than £150,000, the second, will incur no charge, after that the surcharge raise from 2 to 15 per cent for increasing numbers of defaults.
If the Bill becomes law the new system will make a first failure liable to a £200 penalty, a second failure £300, and subsequent failures £400.
The Bill also includes proposals to prevent the loss of tax on insurance companies assets which are transferred to another firm as part of a Insurance Business Transfer Schemes.
If the Bill passes this evening it will move on to be scrutinised by the Treasury select committee.