Today the Government published this year's Finance Bill; it is available as a downloadable .pdf version in two volumes, as well as in html. Pensions matters are contained in Volume 1, clauses 150 and 151 (Part 6); and in Volume 2, a substantial Schedule 19 which makes many amendments to the Finance Act 2004. Some of these were indicated in the Inland Revenue Technical Note of 16 February 2005, which we summarised on this site. Conversely, not all of the subjects of this Note appear to have been implemented (yet) in the Bill.

A useful 48-page set of Explanatory Notes [PDF] about these amendments to FA 04 has been provided by the Revenue

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How will the Bill be affected if the Government calls a general election?

(Aries comment)

Income tax and corporation tax are annual taxes which expire on 5 April each year. Without Parliamentary sanction (Budget Resolutions and Ways and Means Resolutions) to levy them in the coming year, the taxes could only be levied for up to one calendar month, ie up to 5 May. The Finance Bill, which gives permanent legal effect to the Resolutions, must have its Second Reading within 30 sitting days and receive Royal Assent by 5 August. This year's Budget Resolutions were passed on 16 March and the Ways and Means Resolution yesterday.

However, a prorogation or dissolution of Parliament invalidates the resolutions. The net effect is that if, as the media would have us believe, the Government intends to call a general election a year early (ie in May 2005), it will have to get Parliament to pass this year's Finance Bill by 5 May (which happens already to be the date set for County Council elections), or risk losing it.