inheritance tax
Councils are discussing the impact of inheritance tax changes on pension death benefits and agricultural property relief.
From April 2027, unused pension funds and death benefits from the Local Government Pension Scheme (LGPS) will be included in a deceased person's estate for inheritance tax purposes, according to a report to Brent Council in March 2026. This change impacts LGPS members and marks a shift from previous rules regarding how these funds are treated for tax calculations.
Bromley Council decided in July 2025 to lobby the government against proposed changes to inheritance tax that would scrap Agricultural Property Relief (APR). A motion proposed by Councillor Will Rowlands and seconded by Councillor Adam Grant expressed concern that scrapping APR, announced in the Autumn budget, would negatively impact family farms and food security.
Inheritance tax is levied on the estate of a deceased person. Separately, from April 2029, salary sacrifice schemes for National Insurance contributions relief within the LGPS will be capped at £2,000 per year, as reported to Brent Council in March 2026.
Key facts
- From April 2027, unused LGPS pension funds and death benefits will be included in estates for inheritance tax. Source
- Brent Council was informed in March 2026 of the LGPS changes impacting inheritance tax. Source
- Bromley Council decided in July 2025 to lobby against scrapping Agricultural Property Relief. Source
- Councillor Will Rowlands proposed the motion regarding Agricultural Property Relief at Bromley Council. Source
- From April 2029, LGPS salary sacrifice schemes will be capped at £2,000 per year. Source
About this summary
This summary was written automatically from our published stories and the council meeting records they draw on, with background from Wikipedia. It describes what councils have discussed and decided; it does not take a view on any decision. Each key fact links to the story it comes from. Updated 1 October 2026. Spotted a mistake? Email community@opencouncil.network.