Claire Trott: Lords call for clarity on pensions and IHT reforms

The draft Finance Bill 2025–26 sets out significant reforms to the inheritance tax (IHT) treatment of pensions. (Source: Money Marketing)

The House of Lords Economic Affairs Sub-Committee has now published its report on these measures as part of its scrutiny of the Bill.

The Committee examined two key areas of inheritance tax (IHT):

  • Reforms to the IHT treatment of unused pension funds and death benefits;

  • Changes to agricultural and business property reliefs (APR and BPR).

While the report also considers APR and BPR, its findings on pensions are particularly relevant given the scale of operational change involved.

The report makes several recommendations to the Government, many of which point to the absence of finalised legislation and supporting guidance. It recommends that implementation should be postponed unless adequate clarity is provided before 6 April 2026.

For many underlying assets, particularly unlisted shares or property holdings, meeting these deadlines would be extremely challenging.

The Committee also emphasises that the Pensions Dashboard must be fully operational to enable personal representatives (PRs) to access the information needed to administer estates efficiently. Without this infrastructure in place, the burden on PRs is likely to increase significantly.

Click here to read the full article 

Scroll to Top

Important

Unapproved financial promotion for investment professionals only.
This is a financial promotion communicated by EIS Platforms Limited, trading as GrowthInvest (FRN 694945).
The content of this financial promotion has not been approved by an authorised person within the meaning of section 21 of the Financial Services and Markets Act 2000. It is communicated in reliance on the exemption in Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005.
It is directed only at investment professionals falling within Article 19(5) of that Order. Persons who are not investment professionals must not act or rely on it. If you are not an investment professional, please do not proceed.
Reliance on this communication for the purpose of engaging in any investment activity may expose you to a significant risk of losing all of the money or other property invested. These investments are high risk and illiquid. Tax treatment depends on individual circumstances and is subject to change. Past performance is not a reliable indicator of future results.

Request VCT Buy-Back Calendar Link

If you would like to see our VCT Buy-Back Calendar, please register your interest and a few additional details and we will get back to you very soon with a link to view the calendar.

Market Download Subscribe

The market download is a regular weekly newsletter for financial advisers, wealth managers and industry contacts. If you would like to receive it, please submit a subscription request below, and our team will review and come back to you with any questions. Please note this newsletter is only intended for industry professionals and connected parties.

Global Returns Project: Find Out More or Make A Donation

Please fill in the details below to find out more or to enquire about making a donation to the Global Returns Project.

Download Request​

Please provide your details in order to download this document.

Download Request

Please provide your details in order to download this document.

Download Request

Please provide your details in order to download this document.

Download Requests

Please provide your details in order to download this document.

Arrange a Demonstration

Please provide as many details as you can and we will get back to you very soon to arrange the demonstration with you.

Sign Up to GrowthInvest

Thank you for your interest in GrowthInvest. We offer GrowthInvest platform accounts to certain private investors as well as to their financial advisers and wealth managers. Because different regulations apply, please choose the correct sign up option below.

If you are a private investor

Please visit the GrowthInvest Platform login page and click on the Register link.

If you are an industry professional

Please provide the following details to help us review your request and configure your account appropriately.

Message Us or Register Interest

If you would like to leave us a message or register your interest in the GrowthInvest platform, please leave a few details outlining how we can help and we will get back to you very soon.

Message Sent

Thanks for your message. We will be in touch soon.