Finance Act: Difference between revisions

A '''Finance Act''' is the headline fiscal (budgetary) legislation enacted by the [[UK Parliament]], containing multiple provisions as to taxes, duties, exemptions and reliefs at least once per year, and in particular setting out the principal tax rates for each [[fiscal year]].

This included a new "Duty on licences for mechanically propelled vehicles" ([[Vehicle Excise Duty]], which went into the [[Road Fund]] until 1936), repealed "customs duties on motor spirit and motor spirit dealers licence duties", and introduced "Provisions as to spirits used for generating mechanical power", along with other provisions related to income tax and tax on alcohol.<ref>{{cite web|url=http://legislation.gov.uk/ukpga/1920/18|title=Finance Act, 1920|work=England Legislation|access-date=2011-05-02}}</ref>

The 1946 Actact established the [[National Land Fund]] and much of [[National Savings and Investments]].<ref>{{cite web| url=http://www.legislation.gov.uk/ukpga/Geo6/9-10/64/introduction| title=Finance Act 1946| date=1 August 1946 |access-date=18 March 2011}}</ref>

The 1948 Actact established the "Special Contribution", which was a one-off [[wealth tax]].

| citation = [[List of acts of the Parliament of the United Kingdom from 1963|1963]] c. 25

The 1963 Actact abolished Schedule A of [[income tax]], which was a tax on the [[imputed rent]] of [[Owner-occupancy|owner-occupiers]]. It also abolished the [[Land Tax (England)|land tax]].<ref>{{cite web |url=https://www.legislation.gov.uk/ukpga/1963/25/section/68/enacted/data.htm?wrap=true |title=Finance Act 1963 {{!}} Abolition of land tax |date=31 July 1963 |publisher=UK Government |access-date=2 April 2024 |archive-date=25 May 2022 |archive-url=https://web.archive.org/web/20220525213107/https://www.legislation.gov.uk/ukpga/1963/25/section/68/enacted/data.htm |url-status=live }}</ref>

The 1965 Actact introduced [[United Kingdom corporation tax|corporation tax]] and [[United Kingdom Capital Gains Tax|capital gains tax]].

| citation = [[List of acts of the Parliament of the United Kingdom from 1972|1972]] c. 41

The 1972 Actact introduced [[Value-added tax in the United Kingdom|value added tax]].

| citation = [[List of acts of the Parliament of the United Kingdom from 1977|1977]] c. 36

This Actact shortly before the [[2010 United Kingdom general election]],{{#tag:ref|Passed on 8 April 2010|group= n}} passed as set out by the [[Labour Party (UK)|Labour Party]] adjusted the rates of the main taxes, in particular introducing on income tax the 50% 'additional rate' band.<ref>[http://www.legislation.gov.uk/ukpga/2010/13/part/1 UK Legislation] Finance Act 2010. Retrieved 2013-07-17</ref>

The Actact also reversed a prospective rise enacted in the [[Finance Act 2007]] of the [[Inheritance Tax (United Kingdom)|inheritance tax]] nil rate band threshold from £325,000 to £350,000 which would have applied from 6 April 2010, thus, emphasising a degree of [[wealth redistribution|redistribution]], the tax instead continues to apply to death estates that do not benefit from any exemptions (such as spouse nil-rate-bands) and consist of a property valued at 25% above the national average.{{#tag:ref|Note: theThe [[Cameron–Clegg coalition|Coalition Government]] maintained this rate and threshold throughout 2010-2015|group= n}}

This Actact of 27 July 2010 under the [[Cameron–Clegg coalition|Coalition Government]] reduced the headline rate of [[Capital Gains Tax]] to 18%.<ref>[http://www.legislation.gov.uk/ukpga/2010/31/schedule/1 UK Legislation] Finance (No. 2) Act 2010. Retrieved 2013-07-17</ref>

The Actact increased the general rate of VAT from 17.5% to 20% (while cutting it for imported goods and materials from to 28.58% to 25% ).{{citation needed|date=July 2019}}).

| citation = [[List of acts of the Parliament of the United Kingdom from 2020|2020]] c. 14

The Finance Act 2020 (2020 c. 14) was enacted on 22 July 2020. Part 2 provides for the introduction of a Digital Services Tax.<ref>UK Legislation, [https://www.legislation.gov.uk/ukpga/2020/14/part/2/enacted Finance Act 2020, part 2], accessed 29 September 2020</ref>

[[Category:United Kingdom Acts of Parliament 20222020]]