Budget Resolution No. 51: Inheritance tax (pension interests)
364Ayes
167Noes
Carried · majority 197 · Government won116 did not vote
647 Members · Aye 364 · No 167 · DNV 116 · grey dots in centre are abstentions
Analysis
Commons
Commons
Parliament voted on 2 December 2025 to approve Budget Resolution No. 51, which brings pension interests within the scope of inheritance tax. The resolution passed by 364 ayes to 167 noes, a majority of 197. The resolution marks a significant shift in how pension wealth is treated on death. Previously, pension pots could generally pass between generations free of inheritance tax, a treatment the government regards as an unintended loophole. Approving the resolution advances the legal basis for taxing those assets as part of a deceased person's estate, potentially increasing the inheritance tax liability for households that have accumulated substantial pension savings and intended to pass them on. Labour MPs voted unanimously in favour, joined by the Scottish National Party, Plaid Cymru, the Green Party, and a handful of independents. Conservatives, Liberal Democrats, Reform UK, and the Democratic Unionist Party all voted against. There were no recorded cross-party rebellions from Labour's own benches. The vote sits within a broader set of Budget-related tax resolutions the government has been advancing, with related divisions on pension and employer contributions legislation also contested in recent months.
Voting Aye meant
Support including pension wealth in inheritance tax calculations, closing what the government regards as a loophole that allows large pension pots to pass tax-free between generations
Voting No meant
Oppose extending inheritance tax to pension interests, arguing it penalises savers, disrupts retirement planning, and represents an unwelcome tax raid on ordinary families
Each row is one party. The stacked bar gives the within-party split of Aye / No / Absent; the columns on the right give the raw counts. The whip column shows the published party position — “Free vote” means the whip was formally removed for this division.
Party
Whip
Aye / No / Abs
Aye
No
Abs
Labour Party
Whipped Aye
304
0
57
Conservative and Unionist Party
Whipped No
0
89
27
Liberal Democrats
Whipped No
0
58
13
Labour and Co-operative Party
Whipped Aye
39
0
3
Independent
—
4
7
2
Scottish National Party
Whipped Aye
8
0
1
Reform UK
Whipped No
0
8
0
Sinn Féin
—
0
0
7
Democratic Unionist Party
Whipped No
0
5
0
Green Party of England and Wales
Whipped Aye
3
0
1
Plaid Cymru
Whipped Aye
4
0
0
Social Democratic and Labour Party
—
1
0
1
Your Party
—
1
0
1
Alliance Party of Northern Ireland
—
0
0
1
Restore Britain
—
0
0
1
Speaker
—
0
0
1
Traditional Unionist Voice
—
0
1
0
Ulster Unionist Party
—
0
1
0
Source · Hansard · UK Parliament Votes API · whip status from announced positions; “free vote” indicates the whip was formally removed
Budget is morally necessary investment to lift children from poverty, rebuild NHS as public service, and tackle public health crisis; lifting two-child cap is paid for by tax avoidance crackdowns and gambling tax.Labour · Voted aye · Read full speech (4,668 words) →
Budget is a tax grab on working people without real reform plan; NHS waiting lists falling far too slowly; government failed to resolve strikes and has no credible social care strategy.Conservative · Voted no · Read full speech (2,779 words) →
Budget treads water on NHS; unclear how medicine price increases and reorganisation costs will be paid; calls for EU customs union and better GP access rather than tax rises.Liberal Democrat · Voted no · Read full speech (2,898 words) →
Budget is progressive and fair; lifting two-child cap will reduce child poverty by 500,000; tax reforms on wealthy and investment in employment support are sound policy.Labour · Voted aye · Read full speech (917 words) →
NHS frontline staff at St Thomas' hospital deserve recognition for managing through strikes; government must prevent further strike action.Labour · Voted aye · Read full speech (89 words) →
Budget lacks growth measures and imposes stealth taxes on working people; freeze on income tax thresholds and EV tax burden rural constituencies disproportionately.Independent · Voted no · Read full speech (714 words) →
Strongly defends two-child cap removal as moral imperative; criticizes Opposition for opposing child poverty relief despite UK being wealthy nation.Labour · Voted aye · Read full speech (543 words) →
Sources
Division dataUK Parliament Votes API
DebateHansard · Commons
Stance analysisAI analysis · Claude 4.x
LicenceOpen Parliament Licence v3.0