Strike (class) 3 – last call for NICs top up The third and likely final deadline for backfilling your national insurance contributions (NICs) record to boost your state pension is under four months away. 5 TAX since 6 April 2020) and its taper threshold (£2 million since 6 April 2017) will all be frozen for a further two years, until 6 April 2030. ■ From 6 April 2026, 100% agricultural relief and 100% business relief will be capped at a non-transferable £1 million total. Above that, relief will be at 50%. From the same 2026 date, relief on certain shares listed on AIM will be halved to 50% in all instances. ■ From April 2027, death benefits from pension arrangements (including death in service benefits) will be included in the estate for IHT purposes, meaning that in some instances, they will be liable to both income tax and inheritance tax. These changes will make little difference for some people, but will upend estate planning for others, something examined further in ‘Time to review your estate planning?’. ✢ The Financial Conduct Authority does not regulate tax advice. Tax treatment varies according to individual circumstances and is subject to change. Credit: Andrey_Popov/Shutterstock.com leven years ago, the coalition government legislated for extending the minimum NICs record for any state pension entitlement from one year to ten years. NICs backdating rules were relaxed to ease the transition. Missed NICs dating back to 2006/07 could be paid at any time up until 5 April 2023. Beyond that date, the old rules would apply, limiting the maximum backdating period to six tax years. Predictably, when 2023 arrived, there was a stampede of enquires about NIC records which the Department for Work and Pensions (DWP) and HMRC could not manage. As a result, the deadline got moved – to 5 July 2023. When that too proved administratively impossible to handle, a third deadline was set: 5 April 2025, giving HMRC and DWP the time to improve their systems. The clock is now ticking on that third deadline, which is unlikely to be extended again. If you have not reached state pension age (now 66 but rising soon) or reached it after 5 April 2017, this is the time to check your NICs record, if you have not already done so. If you are under 66 the starting point is https://www.gov.uk/check-statepension. ✢ The Financial Conduct Authority does not regulate tax advice. Tax treatment varies according to individual circumstances and is subject to change. E Credit: gorillaimages/Shutterstock.com
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