Ms Nusrat Ghani

Let me explain what will happen next. I am now required under Standing Order No. 51(3) to put successively, without further debate, the Question on each of the Ways and Means motions numbered 2 to 62, and the money motion on which the Finance Bill is to be brought in. These motions are set out in a separate paper distributed with today’s Order Paper. The Deputy Speaker put forthwith the Questions necessary to dispose of the motions made in the name of the Chancellor of the Exchequer (Standing Order No. 51(3)). 2. Income tax (main rates) Resolved, That for the tax year 2025-26 the main rates of income tax are as follows— (a) the basic rate is 20%, (b) the higher rate is 40%, and (c) the additional rate is 45%. And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968. 3. Income tax (default and savings rates) Resolved, That— (1) For the tax year 2025-26 the default rates of income tax are as follows— (a) the default basic rate is 20%, (b) the default higher rate is 40%, and (c) the default additional rate is 45%. (2) For the tax year 2025-26 the savings rates of income tax are as follows— (a) the savings basic rate is 20%, (b) the savings higher rate is 40%, and (c) the savings additional rate is 45%. And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968. 4. Income tax (starting rate limit for savings) Resolved, That— (1) For the tax year 2025-26 the amount specified in section 12(3) of the Income Tax Act 2007 (the starting rate limit for savings) is “£5,000”. (2) Accordingly, section 21 of that Act (indexation) does not apply in relation to the starting rate limit for savings for that tax year. And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968. 5. Income tax (appropriate percentage for cars) Resolved, That (notwithstanding anything to the contrary in the practice of the House relating to the matters that may be included in Finance Bills) provision may be made taking effect in a future year increasing the appropriate percentages mentioned in sections 139 to 142 of the Income Tax (Earnings and Pensions) Act 2003. 6. Capital gains tax (the main rates) Question put, That— (1) In section 1H of the Taxation of Chargeable Gains Act 1992 (the main rates of CGT)— (a) omit subsection (1A) (which sets out the rates for residential property gains accruing to individuals), (b) in subsection (3) (which sets out the rates for gains accruing to individuals that are not residential property gains or carried interest gains)— (i) for “10%” substitute “18%”, and (ii) for “20%” substitute “24%”, (c) omit subsection (4A) (which sets out the rates for residential property gains accruing to personal representatives), (d) in subsection (6) (which sets out the rates for gains accruing to personal representatives that are not residential property gains or carried interest gains), for “20%” substitute “24%”, (e) omit subsection (7) (which sets out the rates for residential property gains accruing to trustees), and (f) in subsection (8) (which sets out the rates for gains accruing to trustees that are not residential property gains or carried interest gains)— (i) omit “Other”, and (ii) for “20%” substitute “24%”. (2) The amendments made by this Resolution have effect in relation to disposals made on or after 30 October 2024. (3) If an asset is transferred on or after 30 October 2024 under an unconditional contract made before that date, the disposal is, despite section 28(1) of the Taxation of Chargeable Gains Act 1992, to be treated for the purposes of the amendments made by this Resolution as taking place at the time the asset is transferred (rather than at the time the contract is made) unless the contract is an excluded contract. (4) A contract is an excluded contract if— (a) obtaining an advantage by reason of the application of section 28(1) of the Taxation of Chargeable Gains Act 1992 was no purpose of entering into the contract, and (b) where the parties to the contract are connected persons, the contract was entered into wholly for commercial reasons. (5) A contract is not to be regarded as an excluded contract unless the person making the transfer makes a claim which includes a statement that the contract meets the conditions to be an excluded contract. (6) But no claim is required if the total amount of— (a) the chargeable gain accruing on the disposal, and (b) the chargeable gains accruing on all other disposals made under excluded contracts, does not exceed £100,000. (7) For this purpose the amount of any gain accruing on a qualifying business disposal is to be taken to be the amount of the gain under section 169N(2) of the Taxation of Chargeable Gains Act 1992. (8) If the person making the transfer makes— (a) a claim under section 169M of the Taxation of Chargeable Gains Act 1992 in relation to a qualifying business disposal (business asset disposal relief), or (b) a claim under section 169VM of that Act (investors’ relief) in relation to a disposal, section 169M(2) and (3) of that Act, or (as the case may be) section 169VM(1) and (2) of that Act, apply to a claim under paragraph (5) in relation to the disposal as they apply to a claim under the section concerned. (9) In this Resolution “qualifying business disposal” has the meaning given by Chapter 3 of Part 5 of the Taxation of Chargeable Gains Act 1992. (10) In this Resolution any reference to the transfer of an asset includes its conveyance. And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.