Clause 6
Finance Bill
4:45 pm
Stephen Timms (Financial Secretary, HM Treasury; East Ham, Labour)
I am happy to take your guidance, Mr. Atkinson, and comment on both the clause and the schedule, but I shall also be happy to have a separate conversation about the schedule when we reach that stage.
Clause 6 introduces schedule 2, which provides for the additional rate of tax from 2010-11. The rate will be set at 50 per cent. in 2010-11 and apply to those with taxable incomes above £150,000 a year. As you will recall, it was announced in the pre-Budget report in November that we would be introducing a 45 per cent. rate in April 2011. However, the global downturn has been worse than predicted and, as a result, more consolidation is required. That is why the additional rate has been brought forward and raised by five percentage points to 50 per cent.