Difference between revisions of "Finance Acts and financial amendments"
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https://www.legislation.gov.uk/ukpga/2025/8/section/4 | https://www.legislation.gov.uk/ukpga/2025/8/section/4 | ||
| − | + | <blockquote>(1) For the tax year 2025-26 the amount specified in section 12(3) of ITA 2007 (the starting rate limit for savings) is “£5,000”.</blockquote> | |
The amount specified is often unchanged and we therefore use the type of weffect “sum confirmed” as described in [[Preparation_Tasks/Record_Effects#Frequent_Up-ratings|Record Effects - Frequent up-ratings]]. | The amount specified is often unchanged and we therefore use the type of weffect “sum confirmed” as described in [[Preparation_Tasks/Record_Effects#Frequent_Up-ratings|Record Effects - Frequent up-ratings]]. | ||
Revision as of 08:52, 16 April 2025
General
Commencement of Finance Acts and other financial documents
Finance Acts (FAs) usually do not have an explicit general commencement provision governing the coming into force of their provisions, but instead tend to provide within the lower level provisions themselves either for how they and the amendments they contain will come into force or for how they will have effect or application, or for both. This ambiguity has caused us headaches for many years over how best accurately to present this information to our users without misleading them.
To get around the ambiguity, we have resorted to treating FAs differently from other legislation. In particular, we make a “scholastic” distinction between the commencement of the provisions themselves and the commencement of the amendments those provisions may contain. For the purposes of initial edit, we state that all provisions (except those which explicitly state that the provision itself comes into force on a specified date or a date to be specified in a commencement order) come into force on the default RA date and we suppress their I-notes when we publish.
For the purposes of amendments, we try to be careful about how we talk about their commencement so as not to be misleading and we add additional information about how they have effect or application and whether they relate to specific financial years, tax years, years of assessment or accounting periods.
It is not only FAs whose amendments’ commencement is qualified in this manner and so we should also take this careful approach with other types of legislation which deal with financial matters: e.g. changes to pensions and pension schemes; student fees, awards and support in relation to academic years; additions to Sch. 1 to the Superannuation Act 1972, etc.
Types of effect used in Finance Acts and other financial documents
Finance Acts often confirm the starting rate limit for savings specified in ITA 2007, s. 12(3) :
https://www.legislation.gov.uk/ukpga/2025/8/section/4
(1) For the tax year 2025-26 the amount specified in section 12(3) of ITA 2007 (the starting rate limit for savings) is “£5,000”.
The amount specified is often unchanged and we therefore use the type of weffect “sum confirmed” as described in Record Effects - Frequent up-ratings.
Mark up of FAs for initial edit
Where a provision explicitly provides for its commencement, either to provide a date or to say it will come into force on a date to be specified in a commencement order, we should mark it with its start date or as prosp accordingly.
How its amendments are stated to come into force or have effect or application can be ignored for the purposes of initial edit. If there is no explicit commencement information about a provision, then we should mark it with the default RA start date.
Note: When doing initial edit, we should tick the box in the initial edit tool to allow for suppression of the I-notes. We do not want I-notes to appear to our users on leg.gov, we only want the date information added to allow us to create a revised version of the Act and make it ready for future update.
We will also need to do a TOES correction to remove the coming into force effects added during the initial edit task, otherwise they will come through unnecessarily into the update task.
Mark up for amendments
| See also: Identify Effects - Finance Acts. |
When marking up FAs we should add the cover page note as set out in Appendix 1.
Where there is explicit commencement information either for the affecting provision itself or for the amendment the provision contains, we should use that date (or “prosp” as the case may be) as the IF Date for our amendment.
However, where there is no explicit commencement date for the provision or its amendments, then we should use the default RA date as the IF Date.
The drafter may also provide for how the amendment is to have effect or application.
Usually we treat provisions which qualify the scope or application of an amendment or restrict how it has effect as savings/transitional provisions and cite those provisions in the Savs column in TOES.
However, financial provisions frequently qualify their commencement and/or that of their amendments to make them have effect or application in relation to a time period (or to an event that may occur during that time period) which is different from the period which begins with the explicit or default start date.
In this situation, we use the following mark up shorthand:
w/e [provision]
w/a [provision]
Where an amendment has effect/application in relation to tax years, accounting periods, years of assessment or financial years we will treat this slightly differently from other “with effect/application” effects to highlight this information to our users:
w/e [provision] tax year 2024-25
w/a [provision] accounting periods on or after 1/4/2024
Where an amendment is said to have effect from an earlier date (but is not stated to be “deemed to come into force” or “treated as coming into force” on that date, so is not a real retrospective commencement), then we should use the following mark up:
w/e [provision] from [date]
Where an amendment is said to have effect or application in relation to a period of time that starts at the same time as its explicit or default start date, we should treat this as a transitional or saving provision rather than a “with effect/application” qualification.
TOES
Where an amendment is marked as w/e or w/a (but not in relation to tax years or accounting periods, etc) then we should use the following IFDQs from the dropdown menu:
“with effect in accordance with”
“with application in accordance with”
And we should cite the relevant provision in the IFDQOther column.
Where an amendment is marked as w/e or w/a in relation to tax years, accounting periods, years of assessment or financial years then we should use the IFDQ = Other option in the dropdown menu and then complete the IFDQOther field following the drafter:
“for the tax year 2024-25 [and subsequent tax years]”
(e.g. 2024 c. 3, Sch. 9 para. 124)
“in relation to accounting periods beginning on or after 1.4.2024”
(e.g. 2024 c. 3, Sch. 6 para. 1(7))
Where an amendment is marked w/e from an earlier date then we should use IFDQ = Other and then complete the IFDQOther field as follows:
“with effect from [date]”
We should make sure that the “with effect/application” provision is cited either as part of the affecting provision (if it is a sub-provision within that whole provision) or as part of the commencement authority (if it is a separate provision from the affecting provision) as well as being mentioned in the IFDQOther field. This ensures there is a link to those provisions in the annotation.
Other IFDQs in the TOES dropdown menus you may need to use:
for specified purposes and with effect in accordance with
for specified purposes and with application in accordance with
Retrospective amendments
There are three more IFDQs in the TOES dropdown menus which relate to the retrospectivity of amendments: i.e. where an amendment is considered to have come into force on a historical date prior to the date on which the legislation containing it was made or received RA:
retrospective
retrospective and with effect in accordance with
retrospective and with application in accordance with
We should only use these IFDQs and the earlier IF Date where the drafter has clearly stated that an amendment is “treated as having come into force” or is “deemed to have come into force” on an earlier date. If they have said merely that the amendment has effect from an earlier date, we should use the usual IF Date and IFDQ = Other and IFDQOther = “with effect from [date]”.
For example, Finance Act 2013 (c. 29), s. 86(4) states:
“This section is treated as having come into force on 20 March 1993.”
Note that sometimes what appears at first glance to be a retrospective amendment will not need to mention its retrospectivity in TOES if it only has its earlier date by dint of being part of a measure announced during the budget speech and starting from that date. The date of the 2013 Budget was 20 March 2013, so the above example in s. 86 is genuinely retrospective as it refers to a date earlier than that.
On the other hand, since the Spring 2024 budget speech took place on 6 March 2024, where the Finance (No. 2) Act 2024 (c. 12), s. 9(14) says “Subsection (13) is to be treated as having come into force on 6 March 2024” that should not be treated as retrospective.
Update
The main thing to consider when applying these financial amendments in update is whether or not we want the date to appear in the annotation since the date may be misleading to our users.
Where we have used IFDQ = “with effect/application” the IF Date should automatically be suppressed. But if there is an explicit commencement provision, we will need to add that date back in to the annotation.
Where we have used IFDQ = Other (in relation to tax years, accounting periods, etc) the IF Date will come through into the annotation. But if there is no explicit coming into force date given in the legislation and we resorted to using the default RA/made date, we will need to remove that date from the annotation.
Update issues
There may be amendment conflicts caused by using the default RA date for two amendments where the start date for both is the same but their w/e period is different. If this happens, it may be best to do a TOES correction and use the later w/e date as the IF Date for the second amendment.
Where w/e accounting period or tax year is way off in the future (e.g. 2024 c. 3, Sch. 2 para. 16(2), which deals with accounting periods on or after 1.4.2027, well over two years in the future) this may potentially result in a conflict with interim amendments which may come along later. If that happens, we should perhaps use the w/e date (1.4.2027) as our IF date instead. We can now revert the previous update in order to correct TOES and re-do the update.
Examples
Finance Acts
2024 c. 3, s. 10(4): RA date with effect
“(4) The amendments made by subsections (2) and (3) have effect in relation to leases entered into on or after 1 April 2024.”
Mark up
Next to the amendment/s put:
“w/e (4)” or “w/e s. 10(4)”
TOES
2024 c. 3 has no explicit commencement provision for s. 10, so use default RA date
IFDQ = “with effect in accordance with”
IFDQOther = “s. 10(4)”
Cite s. 10(4) in the affecting provision column alongside the affecting provision (e.g. s. 0010(02)(04)).
Update
Since we have used the default RA date and the amendment has effect in relation to an event happening on or after 1.4.2024 in accordance with s. 10(4), we don’t want the RA date to appear in the annotation:
“(with effect in accordance with s. 10(4) of the amending Act)”
2024 c. 3, Sch. 9 para. 124: RA date with effect for tax year
“124 The amendments made by section 14 and this Schedule have effect for the tax year 2024-25 and subsequent tax years.”
https://www.legislation.gov.uk/ukpga/2024/3/schedule/9/paragraph/124
Mark up
Next to the amendment/s put:
“w/e Sch. 9 para. 124 tax year 2024-25 and subsequent tax years”
You can either highlight the words “tax year 2024-25 and subsequent tax years” or write them out.
TOES
2024 c. 3 has no explicit commencement provision for Sch. 9, so use default RA date
IFDQ = Other
IFDQOther = “for the tax year 2024-25 and subsequent tax years”
Cite Sch. 9 para. 124 in the commencement authority.
Update
Since we have used the default RA date and the amendment has effect in relation to a tax year, we don’t want the RA date to appear in the annotation:
“(for the tax year 2024-25 and subsequent tax years)”
2024 c. 3, Sch. 6 para. 1(7): RA date with effect for accounting period
“(7) Those amendments have effect in relation to accounting periods beginning on or after 1 April 2024.”
https://www.legislation.gov.uk/ukpga/2024/3/schedule/6/paragraph/1
Mark up
Next to the amendment/s put:
“w/e Sch. 6 para. 1(7) accounting periods beginning on or after 1/4/2024”
You can either highlight the words “to accounting periods beginning on or after 1 April 2024” or write them out.
TOES
2024 c. 3 has no explicit commencement provision for Sch. 6, so use default RA date.
IFDQ = Other
IFDQOther = “for accounting periods beginning on or after 1.4.2024”
Cite Sch. 6 para. 1(7) in the affecting provision column alongside the affecting provision (e.g. Sch. 06 para. 001(02)(07)).
Update
Since we have used the default RA date and the amendment has effect in relation to an accounting period, we don’t want the RA date to appear in the annotation:
“(for accounting periods beginning on or after 1.4.2024)”
2024 c. 3, Sch. 1 para. 16: amendments with effect from a date to be appointed
The drafter may specify that a provision or the amendments it contains have effect from a date to be appointed in subsequent regulations. For example, certain amendments by 2024 c. 3, Sch. 1 are to “have effect in relation to accounting periods beginning on or after the appointed day” and that day is defined as “a day appointed by the treasury in regulations” (see Sch. 1 para. 16):
https://www.legislation.gov.uk/ukpga/2024/3/schedule/1/paragraph/16
TOES
2024 c. 3 has no explicit commencement provision for Sch. 1, so use default RA date as usual.
IFDQ = “with effect in accordance with”
IFDQOther = “Sch. 1 para. 16”
Cite Sch. 16 in the commencement authority.
When S.I. 2024/286 comes along later and appoints 1.4.2024, so that the amendments have effect in relation to accounting periods beginning on or after 1.4.2024, then we add the following effects against the relevant provisions of Sch. 1:
Type of effect = “having effect as specified”
Suggested commentary, e.g.: “Sch. 1 para. 2: amendments have effect in relation to accounting periods beginning on or after 1.4.2024 by virtue of S.I. 2024/286, reg. 2”
Also, another effect against Sch. 1 para. 16 in order to produce a P-note (for exercise of power):
Type of effect = “Appointed day(s)”
Suggested commentary: “Sch 1 para. 16: 1.4.2024 appointed by S.I. 2024/286, reg. 2”
The “having effect as specified” effects (in a similar manner to “coming into force” effects) prompt an additional Commencing Effects Research task. In that task, the information from the “having effect as specified” effects in the record effects task gets imported as “specifying with effect” IFCO details in the amendments by 2024 c. 3, so that an update task is created to add these details to the end of the F-note:
“Pt. 3 Ch. 6A omitted (with effect in relation to accounting periods beginning on or after 1.4.2024) by virtue of Finance Act 2024 (c. 3), Sch. 1 paras. 2, 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2”
Explicit commencement date and with application in relation to an event occurring in specific financial year
S.I. 2013/3181, reg. 1(2)
Reg. 1(1) provides explicit commencement date of 13.1.2014
Reg. 1(2) applies to an event which happens in a financial year beginning on or after 1.4.2014:
“(2) These Regulations apply in relation to council tax reduction schemes made by billing authorities for financial years beginning on or after 1st April 2014.”
https://www.legislation.gov.uk/uksi/2013/3181/regulation/1/made
Since it is not a straight forward reference simply to a financial year, but to an event that happens on or after the beginning of a financial year, we should use w/a reg. 1(2).
Update
But when we apply update the annotation should show the coming into force date
“(13.1.2014 with application in accordance with reg. 1(2) of the amending S.I.)”
Explicit retrospective date and with effect
2013 c. 29, Sch. 38 para. 8 explicitly states that the amendment by para. 6 comes into force retrospectively at 11.12.2012 (it doesn’t simply state it has effect or application from that date) but also qualifies how that amendment is to have effect:
“(1) The amendment made by paragraph 6 is to be treated as coming into force on 11 December 2012 and has effect in relation to—
(a) supplies of goods on or after the commencement day, and (b) supplies of goods in the period beginning with 11 December 2012 and ending immediately before the commencement day, if and to the extent that the goods are not made available before the end of that period to the person to whom they are supplied.
(2) “The commencement day” means the day on which this Act is passed.”
https://www.legislation.gov.uk/ukpga/2013/29/schedule/38/paragraph/8
Mark up
“Retrosp to 11.12.2012 w/e Sch. 38 para. 8
TOES
The amendment has an explicit retrospective start date.
IFDQ = “retrospective and with effect in accordance with”
IFDQOther = “Sch. 38 para. 8”
Cite Sch. 38 para. 8 in the commencement authority.
Update
This will need a bit of rearranging to make it look like this:
“(retrospective to 11.12.2012 and with effect in accordance with Sch. 38 para. 8 of the amending Act)”
Transitional provision rather than with effect/application
2024 asc 6, s. 23(4): S. 6 is explicitly in force at 1.4.2025 by s. 23(3)(b), but its amendments have effect in accordance with s. 23(4):
“(4) The amendments made by section 6 have effect in relation to chargeable days falling on or after 1 April 2025.”
https://www.legislation.gov.uk/asc/2024/6/section/23
The IF Date is not misleading and s. 23(4) can be cited as a transitional or ancillary provision in Savs.
“(1.4.2025) by … ss. 6, 23(3)(b) (with s. 23(4))”
Other types of legislation
Student fees, award and support in relation to academic years
S.I. 2024/669, reg. 1(1) explicitly commences the S.I. on 12.6.2024.
Reg. 1(3)(4) qualifies the commencement of the amendments so that they apply in relation to the provision of support to students in relation to a specific academic year:
“(3) The amendments made by regulations 2 to 8 and regulation 20 apply in relation to the provision of support to a student in relation to an academic year which begins on or after 1st August 2024, whether or not anything done under these Regulations is done before, on, or after that date.”
(4) In paragraph (3), an “academic year” is the period of twelve months beginning with 1st January, 1st April, 1st July or 1st September of the calendar year in which the academic year of the course in question begins, according to whether the academic year of the course in question begins—”
(a) on or after 1st January and before 1st April;
(b) on or after 1st April and before 1st July;
(c) on or after 1st July and before 1st August; or
(d) on or after 1st August and on or before 31st December.”
https://www.legislation.gov.uk/uksi/2024/669/regulation/1/made
Mark up
We should use w/a reg. 1(3)(4).
TOES
Use explicit commencement date as IF Date.
IFDQ = “with application in accordance with”
IFDQOther = “reg. 1(3)(4)”
Cite reg. 1(3)(4) in the commencement authority (e.g. reg. 001(01)(03)(04)).
Update
But when we apply update the annotation should show the coming into force date:
“(12.6.2024 with application in accordance with reg. 1(3)(4) of the amending S.I.)”
Pensions regulations
Explicit commencement date and with effect for tax year
S.I. 2024/1012 has explicit commencement date but its amendments have effect in relation to a specific tax year:
“(2) These Regulations come into force on 18th November 2024. (3) The amendments made by these Regulations have effect for the tax year 2024-25 and subsequent tax years.”
https://www.legislation.gov.uk/uksi/2024/1012/regulation/1/made
Mark up
“w/e reg. 1(3) tax year 2024-25 and subsequent tax years”
TOES
Use explicit commencement date as IF Date.
IFDQ = Other
IFDQOther = “for the tax year 2024-25 and subsequent tax years”
Cite the whole of reg. 1(2)(3) in the commencement authority.
Update
We want the IF Date to show in the annotation alongside the with effect information:
“(18.11.2024 for the tax year 2024-25 and subsequent tax years)”
Amendments to pension schemes having effect from an earlier date
S.I. 2024/281 is explicitly in force at 1.4.2024 but some of its amendments have effect from an earlier date, 1.4.2015 (but note that they are not expressed to be treated as if they came into force on that date):
“(2) These Regulations come into force on 1st April 2024. (3) Regulation 30(3)(a), (d), (e) and (f) has effect retrospectively from 1st April 2015.”
https://www.legislation.gov.uk/uksi/2024/281/regulation/1/made
Mark up
“w/e reg. 1(3) from 1.4.2015”
TOES
Use explicit commencement date as IF Date.
IFDQ = Other
IFDQOther = “with effect from 1.4.2015”
Cite reg. 1(2)(3) in the commencement authority.
Update
We want the amendment to appear at PiT 1.4.2024, but we don’t want that date to appear in the annotation as the two dates together might be confusing:
“(with effect from 1.4.2015)”
Superannuation (Admission to Schedule 1 to the Superannuation Act 1972) Orders
These Orders have an explicit commencement date and make bulk changes to 1972 c. 11, Sch. 1, but those changes are expressed each to have effect from different dates, some or all of which are earlier than the commencement date.
S.I. 2023/1361, reg. 1(2) says the Order is in force at 8.1.2024 but its amendment have effect from different dates:
“(2) This Order comes into force on 8th January 2024 but has effect from the dates specified in this Order.”
https://www.legislation.gov.uk/uksi/2023/1361/article/1/made
And then, for example, in art. 2 it states that the amendments to a couple of headed lists in Sch. 1 have effect from various different dates:
“2.—(1) Schedule 1 to the Act … is amended as follows.
(2) In the list of “Other Bodies”—
(a) with effect from 1st October 2021, insert “Employment by NHS England”; and (b) with effect from 25th March 1972, insert:
(i) “Employment by the Parliamentary Commissioner for Administration”; and (ii) “Employment by the Health Services Commissioner for England”.
(3) In the list of “Museums and Galleries”, with effect from 1st April 2022, insert “Employment by the Royal Air Force Museum”.”
Mark up
“w/e reg. 1(2) from 1.10.2021” or highlight the relevant text.
TOES
Use explicit commencement date as IF Date.
IFDQ = Other
IFDQOther = “with effect from 1.10.2021”
Cite reg. 1(2) in the commencement authority.
Update
We want the amendment to appear at PiT 8.1.2024, but we don’t want that date to appear in the annotation as the two dates together might be confusing:
“(with effect from 1.10.2021)”
Appendices
There are two appendices attached to this document.
Appendix 1 contains the cover page note that the editor should add to Finance Acts during mark up explaining the use of “with effect” and “with application”. It also contains some notes to help during mark up.
Appendix 2 is a historical record of Norman Hodgett’s original Editorial Practice Note EPN0001 (“On applying effects of Finance Acts etc.”), which I think is still referred to in the wiki in several places.
Appendix 1
Mark up cover page note for Finance Acts
“In force position is indicated at Part or Sch. headings (and, in some cases, the user is redirected to provision level).
But editors please note amendments may be in force at different dates to the amending provision. Also, they may be in force at RA (or fixed future date, or prosp. or retrosp.) but "with effect" or "with application" in relation to some other date, period, etc.
These cases are indicated in the mark up by "w/e" or "w/a" respectively with a reference to the relevant provision or sub-provision.
E.g.
"(w/e - (3))" means "with effect in accordance with subsection (3) [of the amending provision]", or
"(w/a - s. 120(4))" means "with application in accordance with s. 120(4)"
When marking up FAs …
- Check at the end the of Part, Chapter or Schedule where your affecting provision is positioned and also in the inducing provision for effects in Schedules, to see if there is a special commencement provision there which gives "with effect" or "with application" details for the affecting provision.
- Check for savings/transitional provisions: these are usually in the affecting provision itself or at the end of the Part or Chapter or Schedule (or in the inducing provision for the Schedule), or in a separate Schedule or provision entitled something like "Savings and transitional provisions…" or "Transitional provisions …"
- Be careful with apparently “retrospective” amendments. Where a change would have been mentioned in the budget speech it doesn't need IFDQ = "retrospective" even if it is coming into force before the RA date. We can just use "wholly in force". So, for example, the tax year 2020-21 is 6.4.2020 and the RA date of FA 2020 (c. 14) is 22 July 2020, so the beginning of the tax year is ostensibly retrospective, but if any amendment was made for the tax year 2020-21 we really just want this in TOES as “wholly in force” from 6.4.2020 and we don’t want to mark it as “retrosp.”.
Appendix 2
EPN001
On applying effects of Finance Acts etc.
(may be applicable for similar examples in other Acts)
It appears that there has been some inconsistency in the way in which effects of Finance Acts have been applied for the years 1991 to 1993, particularly in the wording of commentary relating to commencement and in the interpretation of expressions frequently used in that context. The following notes give some general guidance on these issues, but NOTE that these are ONLY for guidance. Editors must always ensure that they have correctly understood the relevant provisions and that the precise effects are accurately reflected within the limits imposed by the database. If in doubt, always discuss with colleagues or consult.
1. Commentary where the provision comes into force at Royal Assent but has effect in relation to some different date or period (e.g. an ‘underwriting year’ or ‘year of assessment’). When citing the commencement position inside the brackets: state the ‘with effect’ position, either following closely the wording of the relevant provision(s) (e.g. “with effect for the years 1992-1993 and subsequent years of assessment”) or, if the effect provision is unusually complicated, it is acceptable simply to refer to that provision (e.g. “with effect as mentioned in s. 205(1) of the amending Act”).
2. Repeals with similar ‘with effect’ provisions. As long as it clear that the words etc. are wholly and permanently repealed, use dotty lines as usual. If it is not clear (e.g. a recent case where the repeal appeared to be limited to one year only and probably fell at the end of that year) it is acceptable to leave the text in brackets.
3. Frequently Used Expressions.
‘Year of Assessment’ or ‘the year 1988-89’ (for example) means the year from 6th. April of the first-mentioned year to 5th. April the next. (See ICTA 1988, s. 832)
‘Financial Year’ means 1st. April to 31st. March. (See Interpretation Act 1978 (c. 30), Sch. 1)
‘Underwriting Year’ means (in relation to 1993 c. 34, Pt. II Ch. III at least) ‘the calendar year’ (i.e., presumably, 1st. January to 31st. December) (See 1993 c. 34, s. 184 (1) - but note also s. 184(2) for the position when an underwriting year ends in the year of assessment)
Again, it is always the responsibility of the editor to ascertain what any particular expression means in a particular case.
16.2.2000 NRH