Finance Bill (Second sitting)

James Wild Excerpts

Committee stage
Tuesday 28th January 2025 Public Bill Committees

[The Economic Secretary to the Treasury (Emma Reynolds)]

These clauses make changes to pension schemes established in, or administered by, persons resident in European economic area states and bring them in line the rest of the world.

Currently, individuals can transfer some or all of their UK pension savings to an overseas pension scheme, provided it is a qualifying recognised overseas pension scheme. Certain transfers to such schemes are subject to the overseas transfer charge, which is a 25% tax charge on the value of the transfer. However, provided they do not exceed the overseas transfer allowance, UK or EEA residents are excluded from this charge for transfers to qualifying overseas pension schemes in the EEA and Gibraltar. That exclusion was introduced to comply with EU fundamental freedoms that were in place at the time. As a result, some pension scheme members can benefit from double tax-free allowances by taking tax-free entitlements from both their UK scheme and their qualifying overseas pension schemes.

The changes made by clause 32 remove that exclusion from the overseas transfer charge for transfers from 30 October 2024. As a result, transfers will be subject to the overseas transfer charge unless another exclusion applies—for example, if the transfer is to a scheme established in a country where the member is a resident. That will reduce the number of tax-free transfers made and help to keep up to £1 billion of pension savings in the UK over the next five years.

Clause 33 concerns the requirements for schemes to be considered as overseas pension schemes and recognised overseas pension schemes. When the UK was a member of the EU, the requirements for schemes based in the EEA were different from those for schemes based in the rest of the world.

The changes made by clause 33 mean that a non-occupational pension scheme established in the EEA must be regulated by a pension schemes regulator in that country—provided there is such a regulator—to be considered an overseas pension scheme. If there is no such regulator, the scheme provider must be regulated for the establishment and provision of the scheme.

Furthermore, to be considered a recognised overseas pension scheme, a scheme based in the EEA must be established in a country with which the UK has either a double tax agreement that allows for exchange of information or a tax information exchange agreement.

The changes will take effect from 6 April 2025. They will align the requirements for schemes in the EEA with those for the rest of the world, and bring the requirements for non-occupational schemes in line with those for occupational ones.

Clause 34 concerns the requirements on administrators of UK registered pension schemes. Under the existing rules for such schemes, the scheme administrator can be a resident in the EEA, which can make enforcement of tax debts from the scheme difficult and costly for HMRC. The changes made by clause 34 would mean that, from 6 April 2026, all scheme administrators of UK registered pension schemes will need to be UK residents. That requirement will support HMRC’s enforcement activities, as there will be a UK resident for it to engage with.

In conclusion, the changes made by these clauses will bring the tax treatment of transfers to EEA and Gibraltar pension schemes, the conditions that EEA overseas schemes need to meet, and the requirements for EEA administrators of UK schemes in line with the rest of the world. I commend the clauses to the Committee.

[James Wild (North West Norfolk) (Con)]

As we have heard from the Minister, clause 32 reduces tax-free transfers from UK tax-relieved pensions by removing the exclusion from the overseas tax charge. The Government have also announced linked tax maintenance measures in the other clauses. Clause 33 makes changes to the conditions for overseas pension schemes and recognised overseas pension schemes established in the EEA, so that from 6 April this year, they must meet the same conditions as schemes established in the rest of the world.

Clause 34 makes changes to the requirements for pension scheme administrators for registered pension schemes so that they must be UK resident. The OTC was introduced in 2017 to prevent individuals reducing the UK tax due on their pensions by transferring them overseas, particularly to low-tax income jurisdictions, while still benefiting from UK pension tax relief. The 25% charge applies on transfers overseas, unless there is an exclusion from that charge at the point of transfer.

At the Budget in the autumn, the Government announced that they would remove the exclusion from OTC of transfers to qualified pension schemes established in the EEA and Gibraltar where the member is resident in the UK or an EEA state. Aligning the treatment to transfer made with those to the rest of the world will deal with the risk of a double tax-free benefit. The tax information and impact note states:

“Aligning the treatment of transfers to QROPS established in the EEA and Gibraltar with that of transfers to QROPS established in the rest of the world... reduces the risk of around £1 billion of UK tax-relieved pension savings being transferred overseas across the scorecard.”

Could the Minister confirm how many individuals use the current exclusion and at what cost? It would also be useful to know how much has been raised by the OTC since it was introduced in 2017.

Clause 32 brings to an end the exclusion that can currently be used to transfer to schemes in the EEA. According to the Society of Pension Professionals, in doing so, individuals can benefit from a double tax-free allowance of more than £2 million. The tax note acknowledges:

“There will be operational impacts on HMRC caused by removal of the exclusion… HMRC will need to make some changes to forms, guidance and processes to support this.”

Would the Minister provide an update on how far HMRC has got in preparing for those updates and changes?

As the Minister said, clause 34 provides that the scheme administrator must be resident in the UK. That means that, ahead of 6 April 2026, schemes will need to check whether their current scheme administrator will remain valid from this date. Again, the tax information and impact note confirms:

“Changing the rules on who can be a scheme administrator for a registered pension scheme, could mean that some individuals might not be able to pay further funds into a scheme if the pension scheme does not appoint a UK resident pension scheme administrator and is deregistered.”

How many individuals does the Minister estimate this will impact, and what guidance will HMRC provide to prevent individuals from falling foul of the rule change? Again, the Society of Pension Professionals has pointed out that it would be useful if the memorandum indicated how this could impact on schemes where all of its trustees act as the scheme administrator but some are EEA based and some are UK resident. I would be grateful if the Minister could provide some clarity on that point. As I have set out, we support this change, and I look forward to the Minister’s response to the technical questions I have raised.

[Emma Reynolds]

I thank the shadow Minister for his questions. I hope to answer all of them and, if I do not, I promise to write to him with clarification. He asked some questions about the number of individuals. I can tell him that in 2023-24, there were 7,100 transfers to qualifying recognised overseas pension schemes, and the value of those transfers was £1.14 billion. There is an increasing risk that these transfers were being made tax free and that some of these individuals would have been benefiting from the double tax-free allowances. I note the hon. Gentleman’s support for eliminating the risk of that and not allowing people to benefit from double tax-free allowances, which is obviously the main intention of these clauses. He asked about HMRC being prepared and the operational challenges that it might face as a result of the changes. Treasury Ministers and officials work very closely with HMRC—we are in the same building—and these changes have been drafted and consulted on with HMRC, so I suspect that I can reassure him that everything is in order.

--- Later in debate ---

[James Murray]

The clause and schedule make changes to alternative finance tax rules for refinancing, and will promote financial inclusion for those who choose to use alternative forms of finance, for either religious or other reasons.

Alternative finance is a method of raising finance that characteristically involves the sale, purchase and renting of assets in circumstances in which conventional financing would involve lending at interest. Currently, a capital gains tax or, in some cases, corporate tax or income tax liability can arise when entering into alternative refinancing arrangements; this would not occur if conventional financing arrangements had been used.

This issue mostly affects properties that do not qualify for capital gains tax private residence relief, such as rental properties, second homes and commercial properties. The changes made by clause 35 and schedule 7 will ensure that, where qualifying alternative finance provisions are used, individuals and companies will not be liable to capital gains tax, corporation tax or income tax on the transfer of part of the beneficial interest in the asset to a financing institution in order to raise finance.

The Government are committed to the continued strength of the UK Islamic finance sector and to it providing access to alternative finance to anyone who seeks it. These measures deliver on this commitment by putting alternative and conventional financing on a level playing field in relation to their tax treatment when refinancing. As a result, those who choose to use alternative finance will receive broadly the same tax treatment as those using conventional financing arrangements. I therefore commend clause 35 and schedule 7 to the Committee.

[James Wild]

As the Minister set out, clause 35 and schedule 7 make changes to the tax rules that apply to alternative finance. They ensure that, where an existing asset is used to raise finance using alternative finance, the tax outcome is broadly the same as it would be had conventional financing been used. The measure aims to level the playing field, and we will not oppose it.

Currently, the refinancing of a residential or commercial property using alternative finance triggers a potential capital gains tax liability on any inherent gain. By contrast, no potential capital gains tax liability arises when a conventional mortgage is used. The policy objective of this measure is one that we support and acted on in government in other areas: to ensure a level playing field across conventional and alternative forms of finance. This issue affects properties that do not qualify for capital gains tax private residence relief, such as residential properties, and will apply to refinancing entered into on or after 30 October 2024.

Once again, I echo the thanks given to the Chartered Institute of Taxation for its work and advice on scrutinising the Bill, as well as for the discussions I have had with it about the clause. The Chartered Institute of Taxation has suggested that the clause could be amended to exempt taxpayers from the liability on inherent gains that were raised on alternative finance transactions before 30 October 2024. They recognise that making such a retrospective change would be unusual. However, they suggest that a retrospective change in circumstances where there is an anomaly in the legislation that is both inconsistent with Government policy during the time the anomaly exists and adversely affects taxpayers, particularly those with protected characteristics, would meet the high bar.

I would be grateful if the Minister could say whether he has considered that point, and what approach HMRC will take to taxpayers who have already incurred a capital gains liability. Can the Minister confirm how many taxpayers using alternative financing will likely benefit from this change? I would also be grateful if he could set out what steps HMRC is taking to deal with any potential for fraud. As I say, we support this measure, and I would be grateful if the Minister would respond to my questions.

[James Murray]

I thank the shadow Minister for his support for these clauses, and for what we seek to do through them: as he said, level the playing field between alternative finance and conventional finance. He asked whether the changes can be applied retrospectively. As he is aware, the Government do not generally apply tax changes retrospectively. The changes to alternative finance tax rules announced in the autumn Budget will apply from 30 October last year. The Government appreciate that some alternative finance customers will have already paid capital gains tax on refinancing arrangements, which is where this question arises from. However, to provide taxpayers with certainty over their tax position and to ensure that the law is applied in the way intended, the Government do not generally apply tax changes retrospectively and will not be doing so in this case.

More broadly, the shadow Minister asked whether we will be taking measures to ensure there is no fraud. It should go without saying that, as with any measures the Government take, we will ensure there is no fraud. That does not apply any more or less to this measure than it would to any other; we want to make sure there is no fraud in the way that any tax measures we take are used. That will be on our radar, as it would be with any other tax changes that we make.

In terms of the number of people affected, I know that the previous Government’s consultation on the alternative financing tax rules published in January last year, which closed in April, received 22 responses, including from alternative finance providers, representative groups, tax and legal professionals, academics, and consumers. This is, of course, a sector that we want to grow. It is one of the many sectors of the UK economy that will drive economic growth.

Question put and agreed to.

Clause 35 accordingly ordered to stand part of the Bill.

Schedule 7 agreed to.

Clause 36

Statutory neonatal care pay

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

[James Murray]

The clause makes a consequential amendment to the shared incentive plan—SIP—to take account of the introduction of statutory neonatal care pay in the Neonatal Care (Leave and Pay) Act 2023. SIP is a tax advantage share scheme through which a company can award free shares to employees, or enable them to purchase partnership shares through salary deductions authorised by the employee. The SIP legislation requires an employer, when entering a partnership share agreement, to provide notice to inform the employee of the possible effect of salary deductions on their entitlement to social security benefits, such as statutory sick pay or statutory maternity pay.

The Neonatal Care (Leave and Pay) Act 2023 introduced provisions to enable parents whose babies require specialist care after birth to take additional paid time off work. The share incentive plan legislation must therefore be updated accordingly to reflect the introduction of statutory neonatal care pay, which may also be impacted by salary deductions. As a result of the changes made by clause 36, statutory neonatal care pay will be included in the notice that employers must provide to employees when entering partnership share agreements alongside other existing statutory payments. The clause will ensure that employees understand the potential impact of salary deductions as part of a SIP agreement on their entitlement to statutory neonatal care pay. I therefore commend the clause to the Committee.

[James Wild]

It is a pleasure to serve under your chairmanship, Mr Mundell. As we heard from the Minister, clause 36 confirms that statutory neonatal care pay is taxable as social security income. The measure will take effect from 6 April 2025, and we support it.

It is important to understand the context in which we are discussing today’s changes; since at least 2014, there have been calls to extend parental leave and pay for parents who have premature babies and would seek neonatal care. I was pleased to stand on a manifesto in 2019 that committed to legislating to allow parents to take extended leave for neonatal care to support those new mothers and fathers who need it during the most vulnerable and stressful days of their lives.

In 2019, the previous Government launched the good work plan proposal to support families, which included proposals to do just that—introduce neonatal care leave and pay. The Government responded to that consultation, which led to the Neonatal Care (Leave and Pay) Bill, introduced as a private Member’s Bill supported by the Government. That new right, confirmed from 6 April, is expected to benefit around 60,000 new parents. It is absolutely right that these measures address some of the difficulties parents face when their baby is in neonatal care.

The impact assessment for that Bill notes that the estimated annual costs to the Exchequer of the care leave paid at statutory flat rate would be around £14 million a year on average. I wonder if the Minister has an update on whether those estimates are still correct. It also suggested that the one-off cost to businesses of familiarising themselves with the new legislation was around £4.7 million, with the resulting annual cost to business estimated at £22 million. Does the Minister have updated figures on the impact of introducing those measures?

The measure we are discussing here is technical and confirm the tax treatment, but it is important—as the Minister said—that employers make clear the implications to their staff members. Can the Minister confirm what action the Government are taking to communicate proactively about the changes? As I have set out, we support this right to neonatal care and pay, and I look forward to the Minister’s response to the specific questions.

[James Murray]

I thank the shadow Minister for his support for this measure. If I understood his comments correctly, he asked a series of questions about the Exchequer impact and estimated costs of the measure itself, whereas the clause we are talking about here is really a consequential and relatively minor technical change to what employers have to say when they notify employees who are taking part in share incentive plans. I could try to look into those questions for him after this Committee sitting, but the information that we are discussing today—the scope of this clause—is actually much more limited than his questions suggest.

This clause is really just about employers notifying employees that if they take part in a share incentive plan, it may impact their statutory benefits, which now include neonatal care pay. It does not make any changes to neonatal care pay itself, which is the subject of separate legislation that is not impacted in any way by these clauses. I would not want anyone watching the Committee or reading Hansard to be under the misapprehension that we are in any way changing neonatal care pay, which we think is very important. This is purely about making sure that employees who are considering taking part in a share incentive plan are fully informed of what impact any salary deductions may have on their eligibility for statutory benefits.

In terms of implementing the scheme, again, we may be talking slightly at cross purposes. This clause is really about ensuring that employees are properly informed about how the share incentive plan works and the implications of having salary deductions for that, rather than neonatal care pay itself. That would be a separate question to be picked up at another time. Having neonatal care pay is an important change in legislation and we are very pleased that it is part of the landscape of statutory benefits, but this clause does not impact neonatal care pay. It is purely about informing employees of the potential impact of salary deductions when they want to engage with a share incentive plan.

--- Later in debate ---

[James Murray]

Clauses 54 and 55 make changes to alternative finance tax rules to put alternative and conventional financing arrangements on a broadly level playing field for annual tax on enveloped dwellings. As with the changes made in clause 35, which we debated earlier, these changes promote financial inclusion for those who choose to use alternative forms of finance, either for religious reasons or otherwise.

The annual tax on enveloped dwellings is an annual charge payable by non-natural persons, such as companies, owning UK residential property valued at more than £500,000. It is intended to discourage non-commercial enveloping of residential property in a company in order to avoid other property-related taxes, such as stamp duty land tax. The charge is not intended to apply to individuals who use alternative finance to purchase residential property.

These clauses fix an issue whereby an unintended annual tax on enveloped dwellings may arise on individuals and financial institutions when using certain alternative finance arrangements. The changes made by clause 54 would ensure that an annual tax on enveloped dwellings charge does not arise just because alternative finance has been used to purchase the property. It does that by disregarding the financial institution’s interest in the property, so that the tax liability is assessed on the basis of the client of the alternative finance arrangement.

Clause 55 fixes an error with the existing legislation and ensures that the treatment for annual tax on enveloped dwellings is the same for those entering into alternative finance arrangements in Wales as it is for those in the rest of the UK.

These clauses, alongside clause 35, which we debated earlier, deliver on the Government’s commitment to the continued strength of the UK Islamic finance sector by putting alternative and conventional financing on a broadly level playing field in their treatment for annual tax on enveloped dwellings. I therefore commend the clauses to the Committee.

[James Wild]

As we heard from the Minister, these clauses extend existing alternative finance provisions to ensure that the ATED charge arises only where the client is a person within the scope of that charge. Clause 54 extends those provisions for land in England, Scotland or Northern Ireland and clause 55 does so for land in Wales.

As we discussed when debating clause 35, alternative financing is a method of raising finance involving the sale, purchase and renting of assets in circumstances where conventional financing would involve lending at interest. Although based on Islamic financing, it can be used by both followers and non-followers of that faith. These changes reflect the approach that we took in government, which the new Government have taken on, to ensure, where possible, a level playing field between conventional and alternative finance transactions. We support the changes.

The ATED is an annual charge payable by companies, partnerships with a company member, and collective investment vehicles that own residential property valued at more than £500,000. An enveloped dwelling is a property that is used or can be used as a residence—for example a house or flat—and that is owned through a corporate structure. The amount of ATED due is worked out through a banding system. The current chargeable amount for properties worth more than £500,000 and up to £1 million is £4,450. If a property is worth more than £20 million, the charge is £292,000. I would be grateful for any data that the Minister has on how much is raised by this tax every year, including any per-band figures. The tax information and impact note includes an annual £5 million negative impact on the Exchequer from 2025 through to 2030. Will the Minister explain what lies behind that? It would also be useful to know how many individuals using alternative finance will be impacted by these changes.

I am grateful to our friends at the Chartered Institute of Taxation for their comments on these measures. They have queried what they term the Government’s piecemeal approach to levelling the playing field for alternative finance arrangements. The CIOT has said that the current legislation does not provide for a look-through to the underlying buyer for stamp duty land tax reliefs such as charities relief, group relief and relief for acquisition by a house builder from an individual acquiring a new dwelling. The effect is that that relief is denied when alternative finance arrangements are in place. This is inconsistent with a policy of providing parity of treatment between alternative finance and conventional financing, and should also be addressed. Will the Minister confirm whether he will consider such changes and, when horizon-scanning, consider adopting a more consistent approach more widely to level the playing field? As I have set out, we support these changes. I hope that the Minister will respond, briefly, to my questions.

[James Murray]

I thank the hon. Gentleman for his support on this matter. He asked about the receipts from ATED. The most recent figures are from 2022-23 and show £124 million of receipts from ATED overall. I hope that puts in context the small, £5 million impact of the changes that these clauses and clause 35 would introduce.

The hon. Gentleman also asked how many people are impacted by these changes. We recognise that they will benefit a small number of finance providers and individuals, and anticipate that the number of people who will benefit will be low. However, it is important to give this sector the confidence to grow and to ensure a level playing field. The shadow Minister agreed that it is important to ensure that the Islamic or alternative finance sector has that level playing field, so that it can contribute towards our country’s economic growth. These clauses, along with clause 35, seek to achieve that goal.

Question put and agreed to.

Clause 54 accordingly ordered to stand part of the Bill.

Clause 55 ordered to stand part of the Bill.

Clause 56

Testing of FMI technologies or practices

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

[Emma Reynolds]

Clause 56 introduces a power enabling changes to be made to stamp duty and stamp duty reserve tax in relation to financial market infrastructure sandboxes. The Government are committed to developing the UK’s capital markets and, as part of that, have announced that they will take forward the private intermittent securities and capital exchange system, known as PISCES. That power will be used to provide an exemption from stamp duty and stamp duty reserve tax for PISCES transactions. This will be a carefully targeted exemption, representing a cost-effective approach to boosting growing private companies and supporting our capital markets.

PISCES is a new type of trading platform that will allow private companies to have their shares traded intermittently, supporting private companies to scale and grow, and boosting the pipeline of future initial public offerings in the UK. Using powers from the Financial Services and Markets Act 2023, which was introduced by the previous Government, this Government will establish the regulatory framework for PISCES in a financial market infrastructure sandbox. That will allow the Treasury to temporarily modify or disapply certain pieces of legislation, to support market operators to trial new or developing technologies or practices, while still achieving appropriate regulatory outcomes. The Government published a response to the PISCES consultation paper at Mansion House on 14 November 2024. As part of this, the Government will lay a statutory instrument to establish the PISCES sandbox by May this year.

Clause 56 will allow the Treasury to make stamp duty and stamp duty reserve tax changes by statutory instrument, in connection with any exercise of the time-limited FMI sandbox power in the Financial Services and Markets Act 2023. The power will be used to introduce an exemption from stamp duty and stamp duty reserve tax for PISCES transactions, as announced at the autumn Budget. That exemption will boost the attractiveness of PISCES, incentivising investors and private companies to participate, and it demonstrates the Government’s commitment to the success of PISCES as part of our wider ambitions to reinvigorate UK capital markets and to deliver growth. The Government will introduce this exemption ahead of the first PISCES trading events. The effect of the exemption will be time-limited, in line with the duration of the PISCES sandbox.

Clause 56 introduces a stamp duty and stamp duty reserve tax power in relation to financial market infra-structure sandboxes that will be used to provide an exemption for PISCES transactions. This will increase the attractiveness of PISCES and demonstrates the Government’s commitment to ensuring its success. The announcement of the exemption has been welcomed by stakeholders.

[James Wild]

As we heard from the Minister, clause 56 introduces a power enabling the Treasury to make stamp duty and stamp duty reserve tax changes in connection with any exercise of the time-limited financial market infrastructure sandbox power. This power will be used to provide an exemption from stamp duty for PISCES transactions, and we warmly welcome these measures.

Like many other aspects of the Bill that we have discussed today, the PISCES trading platform was the previous Government’s idea, as part of our commitment to trial new or developing technologies and practices to help companies to scale and grow. While in government, we introduced significant reforms to the UK listings regime, supporting public markets and companies choosing to list in the UK. That included implementing Lord Hill’s listing review reforms. The PISCES consultation noted:

“A key challenge for private companies is that, at early stages in their growth, there are no standardised ways for shareholders to realise their gains…or to allow companies to rationalise their shareholder base by providing their early investors an exit route. Similarly, it is harder for investors to access companies that are not yet operating on public markets.”

PISCES provides a regulatory framework for the intermittent trading of private company shares on a multilateral system. I welcome the Government’s support for PISCES, which will form an important part of the UK’s offer to companies seeking to grow and list in the UK.

I would be grateful if the Minister provided an update on the impact that PISCES is expected to have by incentivising current and potential investors to buy shares on the system, bringing greater transparency and efficiency. I note that PISCES will run for an initial period of five years. Will the Minister commit to regularly updating the House on progress?

There will not be a public market-style market abuse regime; instead, the Financial Conduct Authority will be given rule-making powers over a disclosure regime. I am sure the answer will be yes, but can the Minister confirm that it is her expectation that the FCA will be properly focused on growth as it devises those rules, and that it will ensure that any new rules are proportionate to the objective that we are seeking to achieve?

The provisions of clause 56 relate specifically to exempting PISCES share transfers from stamp duty and stamp duty reserve tax, a measure that, in their response to the consultation, UK Finance and the Association for Financial Markets in Europe said

“should be strongly considered by HMT in order to help incentivise use of the platform”.

They added that it is important

“to generally reduce frictions for companies and shareholders using the platform as far as…possible,”

and the FCA rules are important in that respect.

Stamp duty and SDRT both tax transactions that transfer securities between parties in exchange for payment. In 2023, the then Government held a consultation entitled “Stamp Taxes on Shares modernisation” and proposed a mandatory single tax on securities instead of separate taxes for electronic transfers and paper instruments. It was suggested that that approach would reduce complexity, and it was widely supported in the call for evidence responses and by the working group that was established. In considering the application of both taxes, I would be grateful if the Minister provided an update on this Government’s view on the previous Government’s proposals, and whether she plans to bring forward any changes in the future.

As I have set out, we support the measures, but I would be grateful for responses to the points I have raised.

[Emma Reynolds]

I thank the shadow Minister for the way he has approached this subject. He is correct, of course, that the previous Government consulted on PISCES in March last year. We responded to the consultation in November, alongside the Mansion House speech delivered by my right hon. Friend the Chancellor.

I am glad that there is cross-party agreement on these issues. When we were in opposition, we were very constructive in our feedback on such proposals. The shadow Minister is right that there are other reforms in this area, which came from the Lord Hill listings review and others—there were other reviews pertinent to capital markets when the Conservative party was in government.

The shadow Minister asked me a number of questions. On estimating the impact, it is really important to note that many stakeholders in the City and across financial services, not least the Investment Association, have welcomed this innovation. We know that investors and those in the market are interested in it, and I think there is great optimism about the demand for shares on PISCES. We still have to lay the statutory instrument, but the innovation is of interest to Members across the House, so I am very happy to update it on the development of PISCES.

On the shadow Minister’s questions about the FCA, we stress to the financial services regulators at every opportunity that any new rules should be proportionate, and I assure him that that is how I will approach my work with the FCA. On his final question, although I am quite new to this position, I am familiar with the demands for the simplification of stamp duty and stamp duty reserve tax—we might make it a little bit easier to say, let alone to pay. I will absolutely prioritise looking at simplification, because any kind of simplification is good for the market and helps to get things going. I am happy to look at that, but I cannot give the shadow Minister an exact answer now.

Question put and agreed to.

Clause 56 accordingly ordered to stand part of the Bill.

Clause 57

Rate bands etc for tax years 2028-29 and 2029-30

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