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Deduction Rate For Sub-Contractors In Construction Industry

Volume 115: debated on Wednesday 29 April 1987

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Question proposed, That the clause stand part of the Bill.

This clause deals with the deduction rate for sub-contractors, and it follows on from the debate that we have just had.

There is no automatic connection between the deduction rate and the basic rate of tax, but the two have moved in step for the past five changes of rate and there are good reasons for that. I am sure that this change will be welcomed as it follows from clause 20 and the decision that the Committee has just taken to reduce the basic rate of tax to 27p.

The Chief Secretary has correctly said that the proposed change in clause 23 simply follows the normal diminution in the rate of income tax. Therefore, as it follows as a matter of course, we take no stand upon it.

Question put and agreed to.

Clause 23 ordered to stand part of the Bill.