---

Finance Bill

I do not think that I am, although I may have slightly misled the hon. Gentleman: the figures that I have just quoted are given on the assumption that the Bill—with the amendments that I have outlined—is enacted and nothing further happens. I have said that if we are re-elected, we will change that, and then the numbers that I have just given will not apply. To secure recovery, the Bill builds on the success of the measures that we have introduced so far. Our stamp duty holiday on all transactions under £175,000 gave support for the housing market when it needed it most, helping 260,000 home buyers. However, many first-time buyers still struggle, so clause 6 increases the stamp duty threshold for first-time buyers from £125,000 to £250,000. Nine out of 10 first-time buyers will now pay no stamp duty at all. To fund that change, clause 7 announces an increase in stamp duty to 5 per cent. for residential property over £l million. Some 850,000 companies will benefit from the deferral of the rise in small companies rate. Clause 3 maintains corporation tax for small companies at 21 per cent. for 2010-11. As my right hon. Friend the Chancellor announced in the Budget, we are staging the fuel duty rise over the coming year. Under clause 12, it is up by a penny this month, which is less than inflation. Clause 13 provides for a further 1p rise in October, with the remainder in January. The Bill helps to underpin strong and sustainable growth. Clause 5 doubles the annual investment allowance to £100,000 for expenditure incurred from this month. Some 99 per cent. of businesses will now be able to deduct all qualifying purchases of plant and machinery from their taxable profits, so we are encouraging investment and helping to support profits. Clause 4 doubles the limit for entrepreneur's relief for capital gains tax, extending the 10 per cent. rate from £l million to the first £2 million of gains over a lifetime. Among other benefits, serial entrepreneurs and business angels will retain more of their gains in order to fund new investments and support further growth. Those are important measures, providing support for small and growing businesses. To help pay for them, the 50 per cent. levy on the excessive bonuses of bankers provided for in clause 22, which was announced in the pre-Budget report and quite widely supported in the House, has raised £2 billion—more than twice what was forecast. Clause 2 maintains corporation tax at 28 per cent.—the lowest rate in the G7—maintaining the UK's position as one of the best places to do business in the world. The Bill provides the key tax measures to halve the deficit over four years. Clause 1 provides for the new 50 per cent. additional rate. Clauses 24, 49, 50 and 71 provide for the restriction of tax relief on pensions for those earning over £130,000 a year, as well as for further anti-forestalling. In drawing up the clauses on pensions, we have balanced certainty—and giving people time to prepare for the changes—with the need for additional consultation. Further work is still needed on what is done for individuals in special circumstances, on contributions for members of defined benefits schemes, and on obligations on scheme administrators. Whenever we can, we will publish draft regulations and primary legislation early to give people a chance to comment. In particular, we will discuss further with pension providers how schemes would pay the recovery charge on behalf of the individual, so that the details can be in place in good time for 2012-13.