House Of Lords Wants Your Views On Inheritance Tax, APR & BPR Changes

Family Business United continues to amplify the family business voice and respond to the needs of our members in challenging the recent changes announced in the Autumn Budget with regards inheritance tax and in particular the changes to APR and BPR.

We are now in a position to share the details below whereby The House of Lords wants your views on planned changes to inheritance tax & the changes to APR and BPR.

The Finance Bill Sub-Committee, chaired by Lord Liddle, is appointed annually by the Economic Affairs Committee to consider the Finance Bill. The Sub-Committee considers issues of tax administration, clarification, and simplification. It does not consider the rates or incidence of tax.

The draft Finance Bill clauses were published on 21 July 2025 for consultation. The Sub-Committee’s inquiry will consider the following two provisions of the draft clauses:

• Reforming inheritance tax: unused pension funds and death benefits

• Reforms to each of agricultural property relief and business property relief

This is a public call for written evidence to be submitted to the Sub-Committee. The deadline for written submissions is 5pm on Tuesday 7 October 2025.

After it has concluded its inquiry, the Sub-Committee will set out its recommendations in a published report.

This may well be the last opportunity to voice any concerns you have prior to decisions being made/implemented. The Sub-Committee welcomes views on the following questions below:

REFORMING INHERITANCE TAX: UNUSED PENSION FUNDS AND DEATH BENEFITS

Identifying inheritance tax due

1. How challenging will it be for personal representatives to identify and report inheritance tax due on unused pension funds and death benefits?

2. 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

3. How significant will liquidity challenges be for personal representatives paying inheritance tax due on unused pension funds and death benefits?

4. How straightforward will it be for personal representatives to recover amounts in respect of inheritance tax from pension beneficiaries?

5. 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

6. Has the Government sufficiently taken into account the impact of the measure on personal representatives and pension schemes administrators?

Implementation and transition

7. 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?

8. 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

9. 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?

10. What issues, if any, might arise in relation to obtaining (and agreeing) valuations of qualifying business and agricultural property for inheritance tax purposes?

Impact

11. 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

12. Are farmers and business owners prepared for these changes, and what help or support might they need?

13. 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?

14. 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

15. What are your views on the consultation process the Government has followed in relation to each of these measures?

You can find out more about the consultation, how to submit evidence and further details on how to follow the consultation here