MPs debate.... Seldom a good start to any post but our beloved representatives were debating key changes to the Finance Bill, specifically IHT changes in relation to pensions. If ever we wanted a prime example of 'retrospective' legislation, look no further than the move to include unused pension funds in our estate for IHT. The first civil service pension was provided to a London port official in 1684; in the private sector, the Bank of England granted its first pension in 1739. But the Chancellor is set to bring about a substantive change which will impact many who have always regarded pensions as the ultimate tax efficient savings vehicle. No more. It is a cautionary tale; where else may the Government be planning changes. Landlords know of the change to 'incorporation' due in just over 3 weeks - something I have posted about recently. Aside from the general and inaccurate perception of there being only 2 options for structuring a property enterprise, the drive to persuading everyone that company is better continues unabated, and it follows that many will look to incorporate in the coming weeks and months, perhaps blissfully unaware of the great peril which may befall them. The thousands who have received enquiries into their incorporations for years '17/18 and '22/23 will attest to both the shock and unfairness of it all. We have a client going through "disincorporation" - not what we recommended, but with little borrowings and gains it might just pay off. There is of course another option. Dealing with S.24, retaining limited liability, avoiding the significant costs brought about through changes in legal title and planning for succession - all can be achieved without needing to incorporate. The rumours of S.24 like measures being applied to investment companies continue - a popular move in the eyes of the landlord hating public - and in the current climate, who could rule this out?

Posted by Chris Haley at 2026-03-12 13:32:25 UTC