The House of Lords Finance Bill Sub-Committee is currently 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?
Lord Liddle, 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.
