Welcome to our monthly update on current legal issues for trustees of DC pension schemes, designed to help you stay up to date with key developments between trustee meetings and to support the legal update item on your next trustee agenda. We have a separate update for DB/hybrid schemes.
Draft legislation on pensions and inheritance tax
The government has published a consultation response, policy paper and draft legislation on bringing pensions into the scope of inheritance tax (IHT) from April 6, 2027.
Key points to note are:
- Death in service benefits will fall outside the scope of IHT.
- Personal representatives (not pension schemes) will be responsible for reporting and paying any IHT due.
- Schemes will be subject to new duties, including a "scheme pays"-style mechanism for settling IHT bills.
A call for evidence has been launched, looking for input on the legislation—see "Have your say" below.
Action: The exact scope of the changes remains unclear in some aspects; contact your usual A&O Shearman adviser for further information.
New corporate identity verification and filing requirements from November 18, 2025
From November 18, 2025 identity verification will be compulsory for new directors and Persons with Significant Control (PSCs) of companies; existing directors and PSCs will need to verify their identity with their next annual confirmation statement (read our August 11, weekly update for more information).
There will also be changes to company register requirements (read our August 18, weekly update for more information).
Action: Corporate trustees must comply by the relevant deadlines. Voluntary verification ahead of mandatory deadlines is encouraged by Companies House.
Have your say
- The House of Lords Finance Bill Sub-Committee has launched a call for evidence on the draft legislation aimed at bringing pensions into the scope of IHT from April 6, 2027 (see above). The deadline for submitting evidence is October 7, 2025.
- The Pensions Regulator (TPR) has launched a consultation on its proposed new enforcement strategy, aiming to deliver a more risk-based, transparent and outcome-focused approach to enforcement. Responses to the consultation should be submitted by November 11, 2025.
- The Data (Use and Access) Act will amend the Data Protection Act 2018 to require organisations to provide a mechanism for receiving and dealing with data protection complaints. The ICO is consulting on draft guidance setting out the new requirements and covering actions before, during and after a complaint. The consultation closes on October 19, 2025.
Pensions academy online: Tuesday, October 7 and Thursday, October 9, 2025
Our next Pensions Academy Online webinars will take place on Tuesday, October 7 and Thursday, October 9, 2025. Each webinar begins at 9:30am and will last approximately one hour. If you would like to attend, please register here.
We will be covering:
- Legal update—Tuesday, October 7, 2025: We'll round up all the latest developments and outline what's on the pensions horizon.
- Pensions 2030 and beyond: preparing now for the future landscape—Thursday, October 9, 2025: we're facing significant change across the UK pensions landscape and more could be coming. We'll look at the big picture from the perspectives of trustees, employers and members, to help you plot a route from here to there.
Watch this space
- Regulations allowing multiple unconnected employers to establish a CDC scheme are expected in the autumn.
- The government intends to consult on trustee accreditation and governance later this year.
- The Data (Use and Access) Act (DUA Act), which makes amendments to the UK General Data Protection Regulation and Data Protection Act 2018, has received Royal Assent. Changes include helpful tweaks to deadlines for responding to data subject access requests and new requirements around handling data protection complaints. Some regulations have been made bringing parts of the act into force but further regulations setting out details and bringing the remainder of the act into force are awaited.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
