UK’s Finance Bill 2024-25 has now moved to the House of Lords, where it had its first reading on 4 March.
The Bill has passed through the House of Commons where MPs debated during the report stage on 3 March 2025, approving 66 amendments proposed by the government on 25 February 2025. No other changes were accepted. The bill then successfully passed its third reading.
The Lords’ version includes all amendments made in the Commons and will likely become the final text of the Finance Act 2025, as the Lords cannot make further changes.
The remaining stages in the Lords are scheduled for 19 March, after which the bill will be sent for royal assent, officially making it law.
Earlier, the UK tax authority, HMRC, announced further amendments to the Finance Bill 2024-25 on 25 February 2025, alongside explanatory notes on the revised provisions.
The amendments also included:
- Clause 37 introducing new sections for claiming relief on foreign income.
- Clause 39 amending relief on foreign gains to cover gains from migrating settlements.
- Clause 40 and Schedule 9, addressing the end of the remittance basis for non-domiciles from April 2025, are updated regarding the remittance of foreign income and capital gains during extended non-residence and conditions for FOTRA (free of tax to residents abroad) securities.
- Schedule 3 on carbon storage decommissioning confirms that the Secretary of State must certify payments into a decommissioning fund.
- Schedule 10 on the temporary repatriation facility charge is revised to address migrant settlements, calculating qualifying overseas capital, income matching, asset transfer rules, income and capital gains ordering, and tax credits.
- Schedule 12 on trusts is updated to align qualifying new resident relief for beneficiaries with other provisions.
