Inheritance tax changes: protect your family business before April 2026
Own a family business? Inheritance tax rules are changing. Act now to protect your legacy.
From April 2026, Business Relief (formerly Business Property Relief) will be capped at £1 million per person. Any value above that threshold will only qualify for 50% relief, leaving a larger portion of your estate exposed to inheritance tax.
What’s changing?
From April 2026:
- 100% Business Relief will be capped at £1 million per person
- Any value above that will only receive 50% relief
- This could result in immediate IHT charges of 10–20%
Why it matters:
If you’re planning to sell your business, retire, or pass it on to the next generation, these changes could significantly increase your tax exposure.
What you can do now:
- Review your current estate planning and business structure
- Identify Business Relief qualifying assets
- Consider transferring Business Relief qualifying assets into trust before the deadline
- Explore alternative options, such as restructuring a company’s share structure as part of a planned succession
- Get tailored legal advice from our private wealth and corporate teams
Contact us
If you would like to know more, please complete the below form and we will send you more information.
