Finance Bill: Public Bill committee preview

The first session of the committee takes place on the morning of Tuesday 16 January, followed by an afternoon session on the same day. Public Bill committee will conclude with two sessions on the morning and afternoon of Thursday 18 January (if required).

The latest amendment paper published by the House of Commons confirms that the following Clauses will be subject to debate (please consult the Explanatory Notes to the Bill for a fuller description of the intent of each clause and schedule listed below).

Membership of the committee will be published in due course.

Part 1: Income tax and corporation tax

• Clause 3 and Schedule 2: will introduce a new tax relief regime for films, television programmes and video games.
• Clause 4 and Schedule 3: allow for changes to Theatre Tax Relief, making its policy intent clearer and streamlining administration.
• Clause 5 and Schedule 4: Changes Orchestra Tax Relief, making its policy intent clearer and streamlining administration.
• Clause 6 and Schedule 5: Introduces changes to Museums and Galleries Exhibition Tax Relief, making its policy intent clearer and streamlining administration.
• Clause 7 and Schedule 6: Amends Schedule 18 to the Finance Act 1998 to streamline administration of the reliefs outlined above.
• Clause 8 and Schedule 7: Makes various amendments to Real Estate Investment Trust (REIT) rules.
• Clause 9 and Schedule 8: Enables companies and groups managing qualifying ships to make a tonnage tax election (so that their profits for the purposes of corporation tax are calculated in accordance with the tonnage tax regime) with effect for elections made on or after 1 April 2024.
• Clause 10 to 14 and Schedule 9: Clause 10 increases limit applying to claims for capital allowance made by lessors to ships leased in the tonnage tax regime. Clause 11 extends the availability of the Enterprise Investment Scheme and Venture Capital Trust tax reliefs to investments in shares issued by qualifying companies and VCTs on or before 5 April 2035. Clause 12 introduces a corporation tax exemption for specified compensation payments and an income tax and capital gains tax exemption for specific relevant onward payments of compensation to ensure sub-postmasters related to the schemes including the Horizon scheme. Clause 13 extends the time limit for an employer company to notify HMRC of a grant of Enterprise Management Incentives (EMI) options from 92 days after the date of the grant of the option to 6 July following the end of the tax year. Clause 14 and Schedule 9 abolishes the Lifetime Allowance (LTA) and sets out the new tax treatment of lump sums and lump sum death benefits with effect on or after 6 April 2024. 
• Clauses 15 and 16 and Schedule 10: Clause 15 will allow the Treasury to make regulations to address the tax impacts of a rectification exercise to remedy age-related discrimination from pensions reform for members of the Senedd and Northern Ireland Assembly. Clause 16 and Schedule 10 makes the cash basis the default basis for calculating profits of trades (including professions and vocations) for the tax year 2024-25 and subsequent years.
• Clauses 17 to 20 and Schedule 11: Clause 17 gives HMRC the power to make regulations offsetting tax paid by workers and intermediaries on income from IR35 rules against subsequent PAYE liabilities of their deemed employer. Clause 18 corrects the legislative reference to how Carer’s Allowance Supplement payments are made.

Part 2: Other taxes

• Clause 19 amends the qualifying conditions for markets applying to HMRC to receive stamp duty and stamp duty reserve tax reliefs. Clause 20 and Schedule 11 ensures that it continues to be the case that no 1.5% charge to Stamp Duty or Stamp Duty Reserve Tax (SDRT) arises in relation to issues of securities or stock or transfers of securities made in the course of capital-raising arrangements or qualifying listing arrangements.
• Clauses 22 to 24 and Clause 26: Clause 22 provides for changes to rates of excise duty on tobacco products. Clause 23 changes rates of vehicle excise duty for vehicle licenses taken out on or after 1 April 2024. Clause 24 amends rates of Air Passenger Duty.
• Clauses 28 to 30: Clauses 28 and 29 increase landfill and aggregate tax rates by inflation. Clause 30 increases the plastic packaging tax by CPI inflation.

Part 3: Miscellaneous and final

• Clauses 35 to 38: Clause 35 improves and enhances the data collected by HMRC from tax returns. Clause 36 amends the regulation-making powers enabling HMRC to introduce penalties related to Making Tax Digital for Income Tax Self-Assessment. Clause 37 allows the use of abbreviations to refer to other Acts and Clause 38 confirms the Bill will be known as ‘Finance Act 2024’ on Royal Assent.

New clauses for debate

At the time of writing, three New Clauses have been proposed for debate:

New Clause 1 (SNP) would require the Chancellor to publish an assessment of the impact of the Act on the UK Government's ability to meet its Net Zero and Paris Climate Agreement obligations. New Clause 2 (SNP) would require an assessment of the impact of the Act on public finances and the cost-of-living crisis. New Clause 3 (Debbie Abrahams, Labour) would assess the Act’s impact on health, inequalities and poverty.