Extract of CST Speech

"I beg to move, that the (Finance No 2) Bill be now read a Second time.

This is a somewhat shortened version of the Finance Bill. Owing to the Dissolution of Parliament, it now contains some 106 clauses, compared with the original 172 presented to the House. However, my right hon. Friend the Chancellor outlined in the Budget statement what we will be doing to maintain British stability and growth in the face of a future of intense global competition and the Bill continues to reflect our determination to meet those challenges and to maintain stability, promote fairness and maximise the opportunities for our nation both now and in the future.

For a tax system to be effective, everyone must pay their fair share of taxes and receive the credits that they are entitled to and that is why the Government have already published proposals to prevent the avoidance of tax on capital gains by people using options to sell or buy assets at uncommercial prices and to close a loophole in the controlled foreign company-or CFC-rules that are designed to prevent UK multinationals from diverting profits to low-tax regimes.

We have set out legislation to close arrangements that seek to avoid or reduce income tax and national insurance contributions on remuneration by using employment-related securities. As outlined in the pre-Budget report, we have published proposals to remove annuities and other annual payments from the types of payment treated as charges on income.

The Government are also committed to closing a number of marketed avoidance schemes that involve financial products that have been disclosed under the rules introduced in the Finance Act 2004, and as announced in the Budget, to legislating to counter the exploitation by companies of differences within and between tax codes to get a UK tax advantage.

The Government believe that these measures and others that were included in the original Finance Bill presented to the House are essential for an effective, principled, targeted and fair tax system. It is therefore our full intention to introduce a second Finance Bill after the election-should it be the wish of the British people-in which the measures not included in this revised version will be brought back. We will, of course, aim to ensure that the statutory dates for these measures will continue to apply, as announced in the Budget. "

  Home Top | Menu