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  Finance Bill - Changing the Threshold for Treating Payments Relating to Termination of Employment as Employment Income
  
  --- MOTION EFFECT ---
  
  
  @ MP voted aye to not allow the threshold at which payments made in relation to the termination of employment are treated as employment income to be reduced via regulations, instead to require an Act of Parliament for any reduction.
  @ MP voted no to allow the threshold at which payments made in relation to the termination of employment are treated as employment income to be reduced via regulations, rather than requiring an Act of Parliament for any reduction.
  
  The majority of MPs voted to allow the threshold at which payments made in relation to the termination of employment are treated as employment income to be reduced via regulations, rather than requiring an Act of Parliament to make any reduction.
  
  Reducing the threshold would increase the National Insurance due as a result of such payments as National Insurance is only paid on employment income.
  
  MPs were considering the Finance Bill[1]. 
  
  The amendment rejected in this vote was:
  
  :Amendment propose: 2, page 14, line 15, leave out âdifferentâ and insert âhigherâ.
  
  Had it not been rejected this amendment would have affected a proposed new addition to the [https://www.legislation.gov.uk/ukpga/2003/1/contents Income Tax (Earnings and Pensions) Act 2003] relating to the taxation of payments in connection with the termination of employment which stated:
  
  :''404B Power to vary threshold'' 
  :(1)The  Treasury  may  by  regulations  amend  the  listed  provisions by substituting,  for  the  amount  for  the  time  being  mentioned  in  those provisions, a different amount.
  
  The amount in question is the Â£30,000 threshold provided for by [https://www.legislation.gov.uk/ukpga/2003/1/part/6/chapter/3/crossheading/payments-and-benefits-treated-as-employment-income Sections 403 and 404 of the Income Tax (Earnings and Pensions) Act 2003], over which payments on termination of employment are treated as employment income for tax purposes. 
  
  
  The rejected amendment was accompanied by the following explanatory statement:
  
  :This amendment removes the power for the Treasury to reduce the Â£30,000 threshold in connection with the taxation of termination payments by regulations.
  
  
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  * [1] [https://services.parliament.uk/bills/2017-19/finance.html Parliament's webpage on the Finance Bill 2017-19]
  
  
  
  
  
  --- COMMENTS AND NOTES ---
  
  (put thoughts and notes for other researchers here)
  