Judith Cummins

With this it will be convenient to discuss the following: Clause 10 stand part. Clause 69 stand part. New clause 3—Notification of taxpayers affected by frozen thresholds— “(1) HM Revenue and Customs must take reasonable steps to identify individuals who, as a result of— (a) the freezing of the starting rate limit for savings under section 9 of this Act, or (b) the freezing of the personal allowance or the basic rate limit under section 10 of this Act, will— (i) become liable to income tax for the first time, or (ii) become liable to income tax at a higher rate than in the previous tax year. (2) HM Revenue and Customs must ensure that each individual identified under subsection (1) is provided with a written notification before the start of the relevant tax year. (3) A notification under subsection (2) must— (a) explain that the individual’s tax liability is affected by the freezing of income tax thresholds, (b) state whether the individual will pay income tax for the first time or move into a higher tax band, and (c) provide information on where the individual can obtain further guidance about their tax position. (4) HM Revenue and Customs must publish, no later than six months after the end of each affected tax year, a report setting out— (a) the number of individuals notified under this section, (b) the number of individuals who became income taxpayers for the first time as a result of sections 9 and 10, and (c) the number of individuals who moved into a higher tax band as a result of those sections. (5) In this section ‘written notification’ includes electronic communication.” This new clause would require HM Revenue and Customs to notify individuals who, as a result of the freezing of income tax thresholds in the Act, will pay income tax for the first time or move into a higher tax band. New clause 4—Review of the impact of tax changes on household finances— “(1) The Chancellor of the Exchequer must, within six months of this Act being passed, publish an assessment of the impact of changes introduced by sections 9,10 and 69 on household finances. (2) The assessment must evaluate how households across different income levels are affected by these changes.” This new clause requires the Chancellor of the Exchequer to assess and publish a report on how the freezing of tax thresholds to 2030-31 impacts households at various income levels. New clause 5—Report on impact of sections 9, 10 and 69— “Within three months of this Act being passed, the Chancellor of the Exchequer must lay before the House of Commons a report setting out— (a) the number of taxpayers who will pay income tax at each rate during each tax year between 2026-27 and 2030-31 under sections 9, 10 and 69, (b) the number of those taxpayers who are pensioners or are of State Pension Age, (c) comparative figures for each tax year since 2020-21, (d) comparative projected figures for each tax year to 2034-35, and (e) comparative figures with a scenario under which normal uprating policy had been implemented for financial years 2020-21 through 2030-31.” This new clause requires the Chancellor of the Exchequer to assess how many people will be in each income tax bracket from 2026-27 through to 2030-31, together with comparative figures before and after that period. New clause 13—Assessment of the impact of changes to the basic rate limit and personal allowance for tax years 2028-29 to 2030-31— “The Chancellor of the Exchequer must, within three months of this Act being passed, publish an assessment of the expected impact on an average earner of the provisions of section 10.” This new clause requires the Secretary of State to publish an assessment of the impact on the average earner of extending the freeze on the basic rate limit and personal allowance for the tax years 2028-29, 2029-30, and 2030-31. New clause 14—Assessment of the impact of the freezing of the personal allowance on those in receipt of the state pension for the tax years 2027-28 to 2030-31— “(1) The Chancellor of the Exchequer must, before the start of the tax year 2027-28, publish an assessment of the impact of the freezing of the personal allowance on those in receipt of the state pension for the tax years 2027-28 to 2030-31. (2) The assessment made under subsection (1) must include details on the estimated total income from tax receipts received in each tax year from individuals whose only income is the state pension.” This new clause requires the Secretary of State to publish an assessment of the impact of the personal allowance on those pensioners whose only income is the state pension for the tax years 2027-28, 2028-29, 2029-30, and 2030-31. New clause 15—Assessment of the impact of exempting from income tax pensioners whose sole income is the basic or new State Pension— The Chancellor of the Exchequer must, within three months of this Act being passed, publish an assessment of the fiscal impacts of exempting pensioners whose sole income is the basic or new State Pension (without any increments) from paying small amounts of income tax.”