The Finance Bill passed report stage in the House of Commons on 5 February 2024. The government had proposed several amendments and all were passed and have now been included in the final version of the Bill.
It is worth noting that ‘New Clause 5’ (electricity generator levy) has been inserted into the Bill as clause 21, with existing clauses renumbered accordingly.
Lords stages have been scheduled for 21 February 2024, according to the Parliamentary calendar. It seems likely that Finance Act 2024 will be given Royal Assent shortly after, clearing the decks before the Spring Budget on 6 March 2024.
Controversy is never far away when it comes to Finance Bills. In his contribution to the report stage debate, James Murray MP, Shadow Financial Secretary to the Treasury, noted concerns around the Schedule 9 changes which were intended to complete the abolition of the lifetime allowance: ‘The Government admit that some provisions will need to be returned to and corrected. That is a far from ideal position to be in before a Bill has even become law. We know this is the case because, towards the end of last month, HMRC admitted that the way in which the Government have legislated to remove the lifetime allowance has “created unintended consequences for members with multiple pension schemes”.
‘HMRC says that further legislation will be necessary to fix three areas in Schedule 9 relating to the abolition of the lifetime allowance. That clearly indicates rushed legislation that runs the risk of creating problems for all involved. The legal firm Wedlake Bell, for instance, has said: “The proposed new tax regime replacing the LTA at breakneck speed from 6 April 2024 is very risky for all parties including trustees, administrators, members and indeed HMRC itself.”’
The Finance Bill passed report stage in the House of Commons on 5 February 2024. The government had proposed several amendments and all were passed and have now been included in the final version of the Bill.
It is worth noting that ‘New Clause 5’ (electricity generator levy) has been inserted into the Bill as clause 21, with existing clauses renumbered accordingly.
Lords stages have been scheduled for 21 February 2024, according to the Parliamentary calendar. It seems likely that Finance Act 2024 will be given Royal Assent shortly after, clearing the decks before the Spring Budget on 6 March 2024.
Controversy is never far away when it comes to Finance Bills. In his contribution to the report stage debate, James Murray MP, Shadow Financial Secretary to the Treasury, noted concerns around the Schedule 9 changes which were intended to complete the abolition of the lifetime allowance: ‘The Government admit that some provisions will need to be returned to and corrected. That is a far from ideal position to be in before a Bill has even become law. We know this is the case because, towards the end of last month, HMRC admitted that the way in which the Government have legislated to remove the lifetime allowance has “created unintended consequences for members with multiple pension schemes”.
‘HMRC says that further legislation will be necessary to fix three areas in Schedule 9 relating to the abolition of the lifetime allowance. That clearly indicates rushed legislation that runs the risk of creating problems for all involved. The legal firm Wedlake Bell, for instance, has said: “The proposed new tax regime replacing the LTA at breakneck speed from 6 April 2024 is very risky for all parties including trustees, administrators, members and indeed HMRC itself.”’
