On Tuesday afternoon (16 December 2025), MPs in the House of Commons will debate and vote on the second reading of the Finance Bill – an important moment in the Bill’s journey through Parliament.
The second reading is the first substantive opportunity for MPs to debate the Bill as a whole and to decide whether it should proceed to the next stages of Parliamentary scrutiny. If a majority of MPs vote in favour, the Bill will move on to further stages where individual clauses can be examined and amended in greater detail.
Why this matters to family businesses
The Finance Bill gives legal effect to the Chancellor’s Autumn Budget proposals and contains a number of tax measures that will influence business planning in the years ahead. For family-owned businesses, changes to Inheritance Tax (IHT) and Business Property Relief (BPR) are the most significant.
What the second reading debate covers
At second reading, MPs will debate the overall principles and purpose of the Finance Bill, rather than individual measures or technical details. A treasury minister will open the debate, followed by speeches from opposition parties and backbench MPs. Crucially:
- No amendments to the Bill can be made at second reading, so the vote is simply on whether the Bill should continue its passage through Parliament.
- If the Bill passes, detailed examination and opportunities to propose changes will come at the committee and report stages in the New Year.
What happens next if the Bill passes?
Assuming a majority of MPs support the Bill at second reading:
- It will enter the committee stage, where MPs can scrutinise individual clauses and propose amendments.
- Following committee stage, the report stage offers further opportunities for changes to the Bill.
- Finally, the Bill will return for a third reading before moving to the House of Lords.
The House of Commons rises for Christmas recess on 19 December so, any detailed scrutiny of the Bill will come in the New Year.
At the end of the second reading debate on Tuesday, the Government will set out the full timetable for the remaining stages of the Finance Bill, including key dates when crucial IHT legislation can be amended.
Is another rebellion on the cards?
In short no, not at this stage. Earlier in the month, Labour suffered a sizeable rebellion on Resolution 50 of the Finance Bill – the bit of legislation relating to the Government’s changes to IHT. We are seeing Labour MPs concerned about changes to IHT are increasingly speaking out – read FBUK’s analysis here.
Bills rarely fall at Second Reading, and so another rebellion on Tuesday is highly unlikely. However, MPs will have the opportunity to debate the broad principles of the Bill, including the government’s changes to BPR.
Write to your local MP
For family businesses concerned about the impact of new IHT rules, this means lobbying and engagement now is crucial to influencing the next stages.
This is your opportunity to write to your MP ahead of the debate on Tuesday. Download FBUK’s Finance Bill briefing for MPs here.