The House of Lords Finance Bill Sub-Committee today invites
contributions to its inquiry on the draft Finance Bill 2025-26.
The Sub-Committee will focus on the following provisions included
in the draft Bill:
- Reforming inheritance tax: unused pension funds and death
benefits
- Reforms to agricultural property relief and business property
relief.
The Sub-Committee will consider the administration and
implementation of these measures, rather than the rates or
incidence of tax.
This inquiry seeks written answers to these questions:
Reforming inheritance tax: unused pension funds and death
benefits
Identifying inheritance tax due
- How challenging will it be for personal representatives to
identify and report inheritance tax due on unused pension funds
and death benefits?
- What is your view of the Government's proposals to ensure
personal representatives can obtain the information they need
from pension providers? How practicable is it?
Liquidity challenges
- How significant will liquidity challenges be for personal
representatives paying inheritance tax due on unused pension
funds and death benefits?
- How straightforward will it be for personal representatives
to recover amounts in respect of inheritance tax from pension
beneficiaries?
- What are your views on the Government's suggestions as to how
personal representatives can manage any liquidity challenges? How
else could the Government support personal representatives who
face liquidity challenges?
Impact
- Has the Government sufficiently taken into account the impact
of the measure on personal representatives and pension schemes
administrators?
Implementation and transition
- How aware of the proposals are those who may be affected by
the proposed change? What more should the Government do to raise
awareness ahead of April 2027?
- What are your views on the proposed timetable for the
introduction of this measure? Do you think there should be any
transitional provisions?
Reforms to agricultural property relief and business
property relief
Identifying and funding inheritance tax due
- How easy will it be for those affected to report and make
arrangements for funding the inheritance tax due, within the
statutory six-month period?
- What issues, if any, might arise in relation to obtaining
(and agreeing) valuations of qualifying business and agricultural
property for inheritance tax purposes?
Impact
- What are your views on the Government's assessment of the
impact of the changes, in terms of the number and type of estates
which are affected? For example, do you think that smaller farms
will be affected by the changes?
Implementation and transition
- Are farmers and business owners prepared for these changes,
and what help or support might they need?
- How straightforward will it be for those eligible for the
reliefs to identify how the proposed changes will impact their
inheritance tax liability, in order that they can plan
accordingly?
- What are your views on the proposed timetable for the
introduction of these measures, and do you think there should be
any transitional provisions?
Consultation on both measures
- What are your views on the consultation process the
Government has followed in relation to each of these measures?
, Chair of the Finance Bill
Sub-Committee, said:
“In its draft Finance Bill, the Government is proposing a measure
to bring unused pension funds and death benefits into the scope
of Inheritance Tax. It is also making significant changes to
agricultural property and business property reliefs.
“The Finance Bill Sub-Committee's work does not look at the rates
of tax proposed by the Government. Instead, it makes
recommendations on how the Government's tax policy can best be
implemented and administered.
“These are important changes. To inform our work we want to hear
from as broad a range of people and organisations as possible. If
you have a view on any aspect of these proposals, please let us
know what you think.”
The deadline for the submission of written evidence is
5pm on Tuesday 7 October 2025
Click here for more information
on the inquiry, and details on how to submit evidence.
