Both report stage and third reading of the Bill took place on Wednesday 3 December 2014. A number of amendments were made to the Bill. The Bill passed third reading, without a vote, and will now move to the House of Lords for consideration.
Summary of the Taxation of Pensions Bill
At present, most people with defined contribution (DC) pension savings use them to buy an annuity. This is because pension tax legislation allows lump sum or flexible withdrawals only in limited circumstances. In Budget 2014, the Government announced that from 6 April 2015, people aged 55 and over would be able to access their DC pension savings when and how they choose, subject to their marginal rate of income tax. The Bill would make changes to pension tax legislation to implement this.
It would also restrict and reduce certain tax charges applying to death benefits. Related changes, such as the provision for the introduction of a guidance guarantee and a prohibition on transfers from some public service defined benefit pension schemes, except to other DB schemes, are in the Pension Schemes Bill 2014/15.
Progress of the Bill
The Bill completed its committee stage on 20 November 2014. The Bill had its second reading debate on 29 October 2014. This Government Bill was presented to Parliament on 14 October 2014.
Keep up to date with all the proceedings and documentation, including amendment papers, on the Taxation of Pensions Bill and find out how a bill becomes an Act of Parliament.
House of Commons Library analysis
The House of Commons Library produces briefing papers to inform MPs of key issues. The papers contain factual information and a range of opinions on each subject, and aim to be politically impartial.
What happens next?
If the report stage and third reading of the Bill are passed in the House of Commons it moves to the House of Lords for consideration.
What is the report stage of a bill?
The report stage gives MPs an opportunity, on the floor of the House, to consider any further amendments (proposals for change) to a bill which has been examined in a public bill committee or on the floor of the House. There is no set time period between the end of committee stage and the start of the report stage.
What happens at report stage?
All MPs may speak and vote. For lengthy or complex bills, the debates may be spread over several days. All MPs can suggest amendments to the bill or new clauses (parts) that they think should be added.
What happens after report stage?
Report stage is usually followed immediately by debate on the bill's third reading.
What happens at third reading?
Debate on the bill is usually short, and limited to what is actually in the bill, rather than, as at second reading, what might have been included.
Amendments (proposals for change) cannot be made to a bill at a third reading in the Commons. At the end of the debate, the House decides (votes on) whether to approve the third reading of the bill.
What happens after third reading?
If the bill started in the Commons it goes to the House of Lords for its first reading.
If the bill started in the Lords it returns to the House of Lords for consideration of any amendments the Commons has made.
Watching proceedings from the public gallery
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