Finance (No. 2) Bill Committee: Clause 86 stand part
344Ayes
173Noes
Carried · majority 171 · Government won131 did not vote
648 Members · Aye 344 · No 173 · DNV 131 · grey dots in centre are abstentions
Analysis
Commons
Commons
MPs voted on 13 January 2026 to approve Clause 86 of the Finance (No. 2) Bill at committee stage (the line-by-line scrutiny phase of the Bill's passage). The vote passed 344 to 173. The clause, considered alongside related clauses 63 to 68, introduces inheritance tax on unspent pension funds and death benefits for deaths occurring after 6 April 2027. The measure reverses a longstanding exemption that allowed unused pension pots to pass to beneficiaries free of inheritance tax. The government estimates it will bring around 10,500 additional estates into inheritance tax liability and raise approximately £1.5 billion by 2029, with 38,500 estates paying more inheritance tax than under the previous rules. Opponents argued the change undermines the incentive to save into pensions at a time when savings rates are already a concern, and that it amounts to an unexpected tax on families who planned their retirement finances under the previous rules. Labour and Labour and Co-operative MPs voted unanimously in favour, joined by four Green MPs and seven independents, producing the 344 ayes. All 89 Conservative MPs who voted, all 62 Liberal Democrats, all 8 SNP MPs, all 4 Plaid Cymru MPs, all 5 Democratic Unionist Party MPs and all 3 Reform UK MPs who voted were in the no lobby, totalling 173. There were no recorded Labour rebels. The division sits within a broader parliamentary argument over the government's October 2025 Budget, which opponents across multiple parties have characterised as raising taxes without a manifesto mandate.
Voting Aye meant
Support applying inheritance tax to unused pension funds, backing the government's Budget measure as a fair and fiscally responsible reform estimated to affect around 10,500 estates.
Voting No meant
Oppose extending inheritance tax to unspent pensions, arguing it undermines incentives to save, hits families unexpectedly, and represents an undisclosed tax rise introduced without a manifesto mandate.
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
295
0
66
Conservative and Unionist Party
Whipped No
0
89
27
Liberal Democrats
Whipped No
0
61
10
Labour and Co-operative Party
Whipped Aye
34
0
8
Independent
—
7
3
3
Scottish National Party
Whipped No
0
8
1
Reform UK
Whipped No
0
3
5
Sinn Féin
—
0
0
7
Democratic Unionist Party
Whipped No
0
5
0
Green Party of England and Wales
Whipped Aye
4
0
0
Plaid Cymru
Whipped No
0
4
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
1
0
Speaker
—
0
0
1
Traditional Unionist Voice
—
1
0
0
Ulster Unionist Party
—
1
0
0
Source · Hansard · UK Parliament Votes API · whip status from announced positions; “free vote” indicates the whip was formally removed
Defended pension inheritance tax and gambling duty increases as fair, necessary reforms aligned with fiscal responsibility; rejected Opposition new clauses on grounds that monitoring occurs through normal processes and guidance will be published in spring 2027.Labour · Voted aye · Read full speech (6,536 words) →
Opposed pension inheritance tax extension and gambling duty hikes as undisclosed tax increases that penalise saving, add administrative complexity for personal representatives, and risk black market migration; called for proper consultation and early guidance.Conservative · Voted no · Read full speech (4,937 words) →
Supported gambling duty increases but warned that pension changes create personal liability risks for executors, cause delays in inheritance payouts, and lack proper transitional protections; flagged technical definition mismatch on free bets tax base.Liberal Democrat · Voted no · Read full speech (3,547 words) →
Strongly supported both pension and gambling tax measures as addressing long-standing unfairness; framed gambling companies as exploiting addictive technologies and evading tax through offshoring.Labour · Voted aye · Read full speech (702 words) →
Advocated for gambling duty increases as fair taxation of harmful online products; argued online sector generates disproportionate profits relative to employment and should contribute to harm costs.Labour · Voted aye · Read full speech (1,495 words) →
Supported new clause 25 requiring impact assessment; warned that 40% remote gaming duty risks pushing users to unregulated black market and may undermine gambling harm prevention funding transitions.Conservative · Voted no · Read full speech (925 words) →
Acknowledged gambling harm concerns but warned that tax increases risk significant job losses in constituency home to bet365 (7,500 employees); cautioned against framing as moral crusade when tax revenue goes to general budget.Labour · Voted aye · Read full speech (3,632 words) →
Sources
Division dataUK Parliament Votes API
DebateHansard · Commons
Stance analysisAI analysis · Claude 4.x
LicenceOpen Parliament Licence v3.0