Finance Bill second reading: why now is the time to act
The Finance Bill’s second reading in Parliament is imminent – what does this mean to the progress of inheritance tax reform?
The Finance Bill returns to the House of Commons for its second reading on Tuesday 16 December. The timing is crucial, as it’s now more important than ever for CLA members, farmers and other rural land managers to write to their MP to challenge the proposed changes to inheritance tax (IHT).
What is the parliamentary process?
The second reading is traditionally the first opportunity for MPs to debate and discuss the main elements of a bill. On Tuesday, a treasury minister will start the debate before speeches from the opposition and backbenchers begin. The CLA is already briefing MPs ahead of this debate.
The Finance Bill cannot be amended at this early stage; so our immediate focus is to highlight both the financial and the human impact of these changes.
"Across the country, family businesses have been reducing their investment, at an enormous cost to the economy and the British public,” says CLA President Gavin Lane.
It is not too late for the Chancellor to scrap the entire policy, and finally recognise the enormous value family-owned businesses bring to the UK
There will be a vote on the principle of the bill, which we expect to pass without much fanfare, as even the MPs who support cause want to see the overall package pass.
What comes next?
After Christmas, MPs will carry out more detailed scrutiny of the bill, through a process known as committee and report stage. This is where individual amendments, and changes can be raised and voted on. This will be the significant area to focus on achieving any future concessions.
Why should I reach out to my MP?
We still need to make all MPs aware of your concerns around the legislation and highlight the implications. This is why it is vitally important to get in touch with your MP today. In doing so, please go into as much detail as you are prepared to about the toll this is taking on your family and on your business.
Last week, MPs voted on the proposal of IHT changes and that the Finance Bill should continue its legislative process. More than 35 Labour MPs abstained from this vote because they understand the distress it is causing our community. Our core focus is to move these abstentions to voting ‘No’ in the new year.
