Local Government Pension Scheme Relief for Stamp Duty Land Tax
Published 13 July 2026
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Who is likely to be affected
Local Authorities and other organisations that are Administering Authorities (AAs) for the purposes of the Local Government Pension Scheme (LGPS), and LGPS asset pool companies established in England and Wales.
General description of the measure
The measure introduces a time-limited relief from Stamp Duty Land Tax (SDLT) on transfers of property from AAs into qualifying pooled investment vehicles established by LGPS asset pool companies.
Policy objective
This relief will facilitate transfers of property located in England and Northern Ireland from AAs to LGPS asset pool companies that are taking place as a result of wider government reforms to drive consolidation and strengthen the management of LGPS investments. This pooling will enable the LGPS to:
- reduce operating costs
- become more competitive
- attract investment
This supports the government’s aims to promote growth and increase investment in the UK.
Background to the measure
The government published a consultation ‘LGPS: Fit for the future’ in November 2024 on proposals relating to the investments of the LGPS, including the mandatory pooling of scheme assets.
Following concerns raised by the sector about the additional tax costs resulting from mandatory pooling, the government announced at Budget 2025 that it would introduce legislation in Finance Bill 2026-27 to provide a relief from SDLT on the pooling of land and property assets.
Detailed proposal
Operative date
This measure will have effect for land transactions which take place between Budget Day 2026 and 31 March 2032.
Current law
The main SDLT legislation is contained in Part 4 Finance Act 2003 and applies a charge to tax where:
- an acquisition of a chargeable interest in land is made under section 43
- the land transaction is a chargeable transaction
Proposed revisions
Legislation will be introduced in Finance Bill 2026-27 to create a new relief for qualifying pooled investment vehicles operated by LGPS asset pool companies.
Summary of impacts
Exchequer impact (£ million)
| 2026 to 2027 | 2027 to 2028 | 2028 to 2029 | 2029 to 2030 | 2030 to 2031 | 2031 to 2032 |
|---|---|---|---|---|---|
| Empty | Empty | Empty | Empty | Empty | Empty |
The final costing will be subject to scrutiny by the Office for Budget Responsibility and will be set out at a future fiscal event.
Macroeconomic impact
This measure will be formally assessed once costings have been certified by the Office for Budget Responsibility but is not expected to have any significant macroeconomic impacts.
Impact on individuals, households and families
There is no impact on individuals as this measure only affects collective investment schemes established by LGPS asset pooling companies.
Equalities impacts
This measure affects collective investment schemes established by LGPS asset pooling companies, therefore it is not anticipated that there will be disproportionate impacts on any protected groups.
Administrative impact on business including civil society organisations
This measure will have no impact on businesses as it specifically relates to collective investment schemes established by LGPS asset pool companies.
LGPS asset pooling companies may face one-off costs in familiarising themselves with the relief and ensuring that their transactions meet relief conditions. These are expected to be negligible. There are expected to be no further one-off or continuing costs.
This measure is not expected to impact on customer experience as the change does not alter any process or tax admin obligations.
This measure is not expected to impact on civil society organisations.
Operational impact (£ million) (HMRC or other)
HMRC will need to make changes to its IT systems to support the changes. These are estimated to cost £0.7 million
Other impacts
Other impacts have been considered and none have been identified.
Monitoring and evaluation
The measure will be monitored through information collected from SDLT returns.
Further advice
If you have any questions about this change, contact the HMRC Stamp Taxes team by email: stamptaxes.budgetfinancebill@hmrc.gov.uk.