Business Relief changes: what your family business needs to consider now

The Business Relief (BR) changes took effect on 6 April 2026. If you own or help run a family business, these new rules may affect how much of your estate is exposed to inheritance tax and the planning steps now worth reconsidering.

These changes matter even if you took action before the deadline, and especially if you didn’t.

What has changed

As of 6 April 2026:

• 100% Business Relief is now capped at £2.5 million per person (£5 million per couple)
• Any value above this threshold now only receives 50% relief
• This means that a larger portion of many business owners’ estates may now fall within the inheritance tax net, potentially resulting in IHT charges of 10–20% on transfers that previously qualified for full relief

The new rules are now in force, and families should consider what this means for business continuity, ownership, and longer-term succession planning.

Why this matters for your business and your family

Whether you are planning a succession, thinking about retirement, preparing your business for sale, or simply wanting to safeguard the long‑term stability of your company, the new BR rules may have a direct impact.

Many families are now:

• Reassessing whether their current structure still achieves the right balance of control and tax‑efficiency
• Reviewing past planning to ensure it was implemented correctly
• Deciding how best to use the revised relief going forward
• Reviewing the impact on business value and inter‑generational planning
• Exploring broader estate‑planning opportunities they may not have prioritised before the change

The deadline may have passed, but the decisions and opportunities have not.

What you can do now

Families can still take practical steps  to strengthen their position under the new BR rules. These include:

• Reviewing your estate planning and business structure to understand how the new caps affect overall exposure
• Identifying which assets now qualify for 100% or 50% relief, and what that means for future transfers
• Considering whether trusts, reorganisations or restructures would help manage risk or support succession
• Exploring new options for control, governance and share ownership under the revised framework
• Ensuring any pre‑deadline planning was properly implemented, documented and aligned with your long‑term goals

Even if you chose not to act before the deadline, or weren’t aware of the changes, there may still be  planning options available.

How we can support you

Our private wealth and corporate teams advise family businesses on the practical implications of the BR changes. We help clients:

• Understand what the new rules mean for their business
• Navigate complex succession or ownership decisions
• Protect family wealth while preserving control and continuity
• Design structures that balance commercial needs with effective tax planning
• Review governance and decision‑making frameworks in light of the new relief limits

Every family and every business is different, and we tailor our advice to your priorities, values and ambitions.

If you would like to discuss the impact of the Business Relief changes on your business, or receive our updated guidance, please get in touch with our team.