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Finance Bill 2021-22 released after first reading 3 November 2021
The Finance bill 2021-22 has been released by HM Treasury detailing the changes described within the Budget last week. The bill had its first reading in parliament on 2 November 2021 and will not follow normal process through the parliamentary system.
The Finance Bill 2021-22 confirms the increase of normal minimum pension age from 55 to 57. This change will come into effect from 6 April 2028.
Other items within the bill are:
UK tonnage tax reform
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• Museum, galleries, theatres and orchestra tax relief • Annual investment allowance cap extension • Residential property developer tax • Simplifying the basis period rules for self-employed and small businesses • Measures to clamp down on tax avoidance
The date for a second reading is yet to be announced.
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House of Lords vote to retain the ‘triple lock’ on state pensions 3 November 2021
On 2 November, the House of Lords voted on an amendment to the Social Security Bill to keep the earnings link of the ‘triple lock’ in place next year. The wage element has been suspended by the government for 2022 -23 following a substantial rise in wages due to the pandemic.
The ‘triple lock’ ensures state pension benefits rise by the highes t of price inflation, earnings growth or 2.5%. Currently set to increase by the Consumer Price Index (CPI) of 3.1%, linking it to earnings growth could see a rise of 8%.
The amendment, brought by Baroness Ros Altmann, was backed 220 votes to 178, receiving votes from peers of all parties. However, the Bill will now be debated further in the House of Commons, where the government retains its majority and is anticipated to overturn the decision.
Altmann commented during the debate: “Pensioners are not a cash machine for chancellors to take money from when wanting to fund other projects or tax cuts elsewhere, especially not in the eye of a cost-of- living storm.”
It was noted in the amendment that the secretary of state should consider setting another earnings figure over using the 8% figure cited. If an alternative cannot be agreed between the House of Commons and the House of Lords, the increased cost of state pension could lead to a re-write of the Budget.
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MPs stand firm on the state pension triple lock 16 November 2021
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