UK Pensions: What’s new this week? - May 26, 2026

IHT and pensions: consultation on draft regulations

Draft regulations have been published setting out information sharing requirements for schemes and personal representatives (PRs) once pension benefits become subject to inheritance tax (IHT) from April 6, 2027. The consultation closes on June 11, 2026.

The regulations cover requirements including:

• Initial information that schemes will be required to provide to PRs after a member’s death (within 28 days of request), including the value of notional pension property (NPP, which falls within the IHT net) other than excluded benefits, and how this will be split between exempt and non-exempt beneficiaries. Where recipients have not been decided, the split can be provided within 14 days of that decision.
• Further information that schemes must provide to PRs where an IHT account is required. This includes the value and percentage of the NPP to which each beneficiary is entitled; and whether the scheme has paid, or intends to pay, excluded benefits to any beneficiary. Again, this must be provided within 28 days of request or, in respect of beneficiaries’ details, within 14 days of beneficiaries being decided.
• Information that schemes must provide to beneficiaries and PRs after any direct payment of IHT by the scheme to HMRC. This must be provided within 14 days of the payment being made or, in the case of informing beneficiaries, within 14 days of those beneficiaries being decided.
• Information that schemes will be required to provide to PRs relating to death benefit beneficiaries and adjustments to lump sum death benefits where there is direct payment of tax by the scheme. This must be provided within three months of the last payment being made.
• In relation to withholding notices (requiring schemes to withhold payment of benefits for up to 15 months)—requirements for schemes to: acknowledge receipt of a withholding notice; confirm whether it is valid; confirm any amounts being withheld; and notify beneficiaries of a valid notice, all within 14 days of receipt (or within 14 days of deciding on beneficiaries, in the case of notifying those individuals). 

Read the draft regulations.

Read our publication: Pensions and Inheritance Tax—preparing for 2027 for more on the IHT changes and what steps schemes need to take to be ready for them.

TPR publishes AI plan

The Pensions Regulator (TPR) has published an AI plan, outlining its expectations for the adoption and governance of AI in workplace pension arrangements. The plan notes the potential benefits of AI, including in communications and administration, alongside emerging risks (including adoption outpacing governance measures; members using AI for financial planning and advice; more sophisticated cyber-attacks and AI-generated scams such as impersonation fraud). TPR’s key expectations of trustees and administrators are:

• To establish robust governance and accountability for their own, and their providers’, use of AI systems and technologies—this will include testing, ongoing monitoring and appropriate risk controls.
• To have a clear data strategy and understand how AI models use and process data.
• To seek appropriate and proportionate professional advice when considering or implementing innovations.

TPR plans to publish more detailed guidance later in 2026 and will seek engagement with industry over the summer.

Read the AI plan and press release.

Latest regulatory initiatives grid

The Financial Services Regulatory Initiatives Forum (which represents nine regulators whose work may have an operational impact on the financial services industry, including TPR, the Financial Conduct Authority and the Information Commissioner’s Office) has published the latest edition of its Regulatory Initiatives Grid. The grid shows a wide range of initiatives and timings that may be relevant for stakeholders, including:

• Having recently published administration guidance, TPR intends to publish an administration strategy later in 2026.
• TPR is continuing its engagement with professional trustee firms to explore the risks and opportunities connected to different professional trusteeship offerings and business models. A market oversight report will be published in September; guidance on appointing a professional corporate sole trustee is expected shortly.
• On DB surplus, the grid states that regulations will be consulted on and published this summer and TPR guidance will be consulted on and published by April 2027. A statement setting out TPR’s early views on factors for trustees to consider will be published by late May 2026.

The grid also covers a number of the areas for which draft regulations under the Pension Schemes Act are expected in due course, including the value for money framework (regulations expected this year) and guided retirement (further detail on timing to be confirmed).

Read the Regulatory Initiatives Grid.

Pensions commission interim report published

The Pensions Commission, tasked by the government to consider the framework needed to ensure adequate pension incomes for the long term, has published its interim report. This flags key issues including the adequacy of contributions under auto-enrolment and the need for a default decumulation approach to convert pension pots into sustainable income through retirement. The report includes a link to share views on the Pensions Commission’s findings to date.

The final report is planned for publication in spring 2027.

Read the Pensions Commission’s interim report.