Legislation blockbusters – an overview

For an overview of the new legislation, click here for our Bulletin on IHT and Pensions published 19/3/2026 and here for our Pension Schemes Act 2026 Bulletin published 29/4/2026.

This present article looks in more detail at what lies ahead under both Acts and the timetable.

IHT and Pensions

The new IHT charges on certain pension benefits under registered pension schemes apply only in relation to deaths on or after 6 April 2027. Nonetheless, there is much for scheme trustees and members to do in advance of this both in understanding the IHT charges and putting in place appropriate paperwork. Wedlake Bell’s long established and highly experienced Pensions and Private Client Teams can assist from the legal perspective and will be publishing further commentary over the coming months.

Some key timetabling points:

The timetable outlined below means scheme trustees and scheme administrators (together PSAs), and scheme members and those likely to be appointed as personal representatives (PRs) of members’ estates will have their work cut out to get up to speed with the new requirements. The timetable is expected to be:

• Spring 2026 – HMRC publish background technical note, issued 11 May 2026;
• Draft regulations (mainly relating to Information sharing between PRs and PSAs):
  • • Technical Consultation on the draft Regulations published 18 May 2026; and
    • Regulations finalised and laid in Summer 2026.

Alongside the above Technical Consultation, HMRC published the following drafts:

(1) guidance on the types of identity evidence PSAs should accept from PRs, and (2) templates for (I) notices to pay IHT which PRs or pension beneficiaries may give to PSAs and (II) notices to withhold payment of up to 50% of pension benefits which PRs may give to PSAs.

In late 2026/early 2027 HMRC are expected to finalise their guidance and revise the relevant pages of their Inheritance Tax and Pensions Tax Manuals.

So much to absorb and do!

Pension Schemes Act 2026

Much of the Act comes into force gradually over the next few years.

Many Regulations underpinning the Act’s provisions are in the process of being drafted. Following this:

• The government will, in the case of many sets of Regulations, consult on the draft version;
• Then consider the responses and make any changes thought by government to be necessary; and
• Finally, the Regulations will be laid in Parliament and made.

But there are also some aspects of the PSA which will have more immediate effect. For instance:

1) The Virgin Media remediation provisions:

These provisions came into effect on Royal Assent on 29 April 2026.

They enable scheme trustees, in appropriate cases, to ask the actuary to review certain past amendments and where reasonably satisfied to give retrospective actuarial confirmation that the amendments are effective as satisfying the statutory standard for contracted-out schemes. Click here for our article “Virgin Media: an Update” in February 2026 Pensions Compass.

In January 2026 the Financial Reporting Council (FRC) published provisional guidance to actuaries on their above role. On 26 March 2026, TPR published its provisional guidance to scheme trustees. The FRC’s guidance was finalised in May 2026.

2) Statutory Guidance on scheme trustees’ fiduciary investment duties:

This topic was a hot-potato during the Parliamentary passage of the Pension Schemes Bill.

It is now for the Government to issue statutory Guidance to scheme trustees on certain aspects of their fiduciary investment duties. A Consultation on draft Guidance is expected soon.

Many consider there is no need for such Guidance and its proposed terms are likely to be controversial.

3) DB schemes Surplus

Given the very large present size of surplus, these provisions will attract great interest. For background, click here for our article in April 2025 Pensions Compass “UK government plans major changes to trapped surplus”.

Regulations need to be made setting out some vital detail, for instance, what is to be the measure of “surplus”.

The new legislation will pose some tricky questions for scheme trustees in relation to their fiduciary duties. We understand TPR plans to publish guidance soon on this topic.

However, the timetable for the PSA 2026 provisions becoming operational depends on the regulations being made. A consultation on draft regulations is expected and it may be the regulations will be finalised by the end of 2026. However, it could be they will not become effective until later in 2027.

Return of surplus to employers may sometimes go hand in hand with a share of surplus being used for members’ benefits. Draft legislation to improve the tax treatment for members is likely later this year, to be included in Finance Bill 2026/2027 in Autumn 2026 and hopefully becoming law in Spring 2027.

Please be in touch if you have queries on the above matters or on any other aspect of the PSA 2026, or Finance Act 2026.

This article is for general information purposes only and does not constitute legal advice or a comprehensive statement of the law. Specific legal advice should always be sought in relation to individual circumstances.

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   • Clive Weber

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   • Pensions & Employee Benefits

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