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Finance Bill

The point that I am making is that there is a simple principle behind the so-called complexity. I asked the hon. Member for Runnymede and Weybridge whether there would be a Division on Second Reading because although the simple principle behind the Bill is fairness, Conservative Members try to criticise it by saying that the provisions on tax avoidance are being over-strengthened. That demonstrates the difference between Labour and Conservative Members and the hon. Member for West Suffolk will no doubt explore the matter in Committee. The Bill contains four elements relating to social justice. It has an environmental aspect and what I call a corporate social responsibility aspect—the anti-tax avoidance measures. It contains measures on pension assistance, it will encourage research and development and it will cut red tape. I welcome clause 2, which will reform the fuel scale charges in line with the Government’s wider environmental objectives. It will give tax incentives to less polluting cars because the VAT fuel scale charges system will be based on carbon dioxide emissions. I also welcome clause 6, which is in line with the VAT compliance strategy outlined by my right hon. Friend the Paymaster General. Clause 6 and schedule 1 are also in line with the principle of fair taxation because they deal with the disclosure of VAT avoidance schemes. Of course, the provisions are limited to firms with a turnover of more than £600,000, so it cannot be said that they are aimed at small business. As I suggested earlier, the measure represents a form of corporate social responsibility. I ask my hon. Friend the Financial Secretary his estimate of the amount that Treasury will gain from the measure during a full tax year. Clause 7, which is titled, ““Charge to income tax on lump sum””, is what I would call a pension-assisting scheme. It will give pensioners added flexibility when retiring because, if they take a lump sum, they may be assessed according to their final salary or a year later according to their retirement pension. [Interruption.] I welcome the hon. Member for Grantham and Stamford (Mr. Davies) back to the Chamber and hope that he is feeling himself again. Clause 13 relates to corporation tax exemption for organisations. It will benefit scientific research organisations and enable them to take wide-ranging research and development opportunities in addition to those development opportunities that my right hon. Friend the Chancellor has tried to entrench in the economy. It will remove red tape to boost R and D. I welcome clause 47, which is small but will create opportunities to cut red tape. It will introduce the power to make regulations to facilitate the stamp duty land tax process through e-conveyancing initiatives. I am not an expert in the field, so I would like to know for my own benefit the categories of individuals or companies who will benefit most from the measure. I have dipped my toe into the water of the Finance Bill and welcome what has been described as the second Finance Bill. It continues our aim of social justice and introduces an element of corporate social responsibility. I do not know whether I will have the opportunity to serve on the Standing Committee—I have not served on a Finance Bill Committee before—but if I do, I look forward to debating the Bill in more detail.