As a business, uncertainty can pose real problems. It can also present us with new opportunities, but often uncertainty causes headaches.
The Budget details proposals for changes in legislation and gives effective dates. But the changes are not made law until they are included in a piece of legislation. For tax, it’s the Finance Bill.
A draft Finance Bill is written, then its read at the House of Commons, debated and amended, before being voted on by the Commons. It then passes to the House of Lords for reading, debate and amendment. Once voted on by the Lords, the amended Bill is passed back to the Commons to agree the amendments. Both Houses must agree the final wording. The Bill is then passed for Royal Assent, which requires the Monarch’s agreement to make the Bill and Act of Parliament (Law). The Act comes into force at midnight or at a set Commencement Date. Only then can businesses gain certainty.