If you own a business or hold shares in one, the value of those assets may be caught by Inheritance Tax (IHT) when you die, or when you gift away the asset. Business Property Relief (BPR) may provide relief against an IHT liability, but do you meet the conditions? Do you know your exposure?
Big changes are coming.
From April 2026, only the first £1 million of qualifying business assets will attract 100% BPR. Any value above that will only get 50% relief. Other business assets may only attract 50% relief in the first place.
Now’s the time to plan.
The upcoming changes to BPR for IHT could fast-track conversations around succession, making now a timely opportunity to think about who will take the reins next.
If handing over business assets (including company shares) isn’t on the cards just yet, Trust structures might offer a way to earmark value today for your future successors.
There’s a clear window to act, and it closes in April 2026. Now’s the time to consider your planning options.
We can help you prepare:
- Understand your position – what relief do you qualify for and what’s your IHT exposure?
- Explore your succession strategy – who are the future owners of your business?
- Clarify your options – from structuring, to timing, and payment of liabilities
- Ensure liquidity – will funds be available to settle any tax?
If you haven’t thought about your IHT exposure, and in particular what your plan is for your business, now is the time to be doing it. Don’t miss out on tax saving opportunities before April 2026. Get in touch with our Tax team to find out more.
