Press release 16 March 2026.
GRiD is pleased that the government has listened to its concerns and confirmed that benefits payable from stand-alone registered group life pension schemes will be exempt from the new inheritance tax changes. This aligns with the treatment of retirement benefit schemes that provide death-in-service benefits.
GRiD highlighted that an earlier draft of Clause 63 of the Finance Bill required members to have been actively accruing benefits under a scheme at the time of death to qualify for an exemption. While this condition may suit pension schemes that involve ongoing retirement benefit accrual, it created uncertainty for more than 8 million employees covered by stand-alone death benefit arrangements*, who cannot accrue benefits because the scheme is not designed to do so.
Katharine Moxham, spokesperson for GRiD, said: “The draft clause was nonsensical because people who are members of stand-alone registered group life pension schemes simply cannot accrue benefits. However, the wording left room for interpretation and caused understandable concern among employers and employees. We are pleased that the government has listened and made the necessary changes to provide clarity and reassurance for our members, employers, and employees and their families.
“At a time when families are dealing with the loss of a loved one, those who have planned ahead to provide financial protection should not face additional inheritance tax on the very benefits intended to support those left behind. This is the right decision and reflects what we believe the government intended but had not set out clearly in the earlier version of the Bill.”
Notes to editors:
*Swiss Re Group Watch 2025
For further information please contact:
Ali Cort
SMUK Marketing and PR
Mob: 07887 484247
acort@smuk.org.uk
Katharine Moxham
Spokesperson for GRiD
Mob: 07887 512508
Katharine.moxham@grouprisk.org.uk
Notes for editors
About GRiD
Group Risk Development (GRiD) is the industry body for the group risk sector, promoting the value to UK businesses of providing financial protection for their staff, enhancing their well-being and improving employee engagement. Our membership includes insurers, reinsurers, intermediaries and those operating in (or with other interests in) the UK group risk market. Together this forms a collective wealth of experience built over many years. Under the chairmanship of Colin Fitzgerald (Distribution Director – Group Protection, L&G Retail) GRiD aims to promote group risk through a collective voice to Government, policymakers, stakeholders and employers.
GRiD works with government departments and regulators involved in legislation and regulation affecting group risk benefits, and with other organisations involved in the benefits and financial protection arenas. GRiD also seeks to enhance the industry’s standing by encouraging best practice and by participating in industry-wide initiatives such as the professional qualification in group risk developed jointly with the Chartered Insurance Institute.
GRiD’s media activity aims to generate a wider awareness and understanding of group risk products and their benefits for employers and employees.
GRiD’s dedicated spokesperson, Katharine Moxham, provides expert media comment on a full range of group risk issues.