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(Except clauses 7, 8, 9, 11, 14, 16, 20 and 92) - Clause 56

Part of Finance Bill – in a Public Bill Committee at 11:30 am on 16th June 2009.

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Photo of Kitty Ussher Kitty Ussher Parliamentary Secretary, HM Treasury 11:30 am, 16th June 2009

Opposition Members are obviously the best of friends. Moving on swiftly, I am of course grateful for the support of at least the Front-Bench spokespersons of both the main Opposition parties.

As today is the first time that I have served under your chairmanship, Mr. Atkinson, in an attempt to ingratiate myself with you I will attempt to keep my remarks specifically related to the clause. I remind the Committee that the clause simply does two things. Since the European Community is not a territory, as defined  in double taxation law, we therefore need another piece of primary legislation to ensure that MEPs will not be subject to double taxation under the new regime. So, we are simply aligning the situation of MEPs with the existing provisions under double taxation law.

The other thing that the clause does is to ensure that the new transitional allowance, as it is called, which is now available to MEPs under the new system, has a basis in law, by linking it to the legal concept of a termination payment.