The Society of Trust and Estate Practitioners (STEP) said two amendments to the Finance Act 2026 would provide greater clarity on tax for personal representatives and more flexibility for charitable giving.
The first amendment, announced in Chancellor John Healey’s budget last week, will allow prospective personal representatives to direct pension scheme administrators to pay inheritance tax due directly to HM Revenue and Customs. STEP said this helps avoid potential cash-flow issues for bereaved families who might otherwise need to pay tax before obtaining probate.
Second, the chancellor is introducing a separate component for pension funds within the inheritance tax charitable giving rules, giving estate administrators more flexibility when calculating eligibility for the reduced 36% rate of inheritance tax.
STEP head of government affairs Emily Deane said the amendments ‘address some of the concerns and practical difficulties that STEP has raised’.
