With this it will be convenient to discuss the following:
New clause 2—Report on the impact of Class 1A National Insurance Contributions on termination awards—
“(1) The Secretary of State must, within 12 months of section 1 of this Act (termination awards: Great Britain) coming into force, lay before Parliament a report on the expected impact of the new Class 1A liability on termination awards in excess of £30,000.
(2) That report must contain an assessment of the expected impact on—
(a) the total net value of termination payments received by individuals;
(b) the average net value of such payments; and
(c) the number of business start-ups using termination payments as funding in their first year in each region of the United Kingdom.”
New clause 3—Report on the impact of Class 1A National Insurance Contributions on sporting testimonials—
“(1) The Secretary of State must, within 12 months of section 3 of this Act (sporting testimonials: Great Britain) coming into force, lay before Parliament a report on the expected impact of the provisions of this Act on sporting testimonials.
(2) That report must contain an assessment of the expected impact on—
(a) the total amounts received by individuals from sporting testimonials; and
(b) donations made to charity from sporting testimonial proceeds.”
New clause 4—Report on Exchequer impact—
“The Secretary of State must, within three years of this Act receiving Royal Assent, lay before Parliament a report on its Exchequer impact.”
New clause 5—Effects of termination awards provisions—
“(1) The Treasury must publish reviews of whether the payment of Class 1A contributions on termination awards under sections 1 and 2 has had—
(a) any effect on the number of termination awards made above £30,000;
(b) any effect on the size of termination awards made above £30,000; or
(c) a disproportionate effect on—
(i) women,
(ii) pregnant women,
(iii) persons aged 50 or over, or
(iv) any other group of people with protected characteristics (within the meaning of the Equality Act 2010).
(2) The first review under subsection (1) shall be published no later than 24 months after this section comes into force.
(3) Subsequent reviews under subsection (1) shall be published no later than 24 months after publication of the previous review.”
This new clause would provide for a general review of the termination awards provisions of this Act within every period of 24 months.
Amendment 1, in clause 5, page 5, line 39, at end insert—
“(3A) No regulations may be made under subsection (3) to bring section 3 or 4 into force until the Secretary of State has made a Statement to the House of Commons on the expected effects of the provisions of this Act on donations to charities by the recipients of sporting testimonial payments.”