Estate & IHT Planning

Upcoming Changes to Agricultural & Business Relief – Act Before April 2026

The 2024 Autumn Statement proposes major changes to Business Relief (BR) and Agricultural Property Relief (APR), set to take effect from 6 April 2026.

Key Changes:

• Businesses and farms may no longer qualify for 100% IHT relief from April 2026, depending on value.
• A new £1 million BR/APR allowance per person, shared across qualifying business and agricultural assets.
• Above £1 million, qualifying assets will only receive 50% Inheritance Tax relief (an effective IHT rate of 20% on assets currently IHT free).
• The allowance will renew every 7 years (similar to the IHT Nil Rate Band).
• No spousal transfer of the unused allowance on death.

What Hasn’t Changed:

• The IHT Nil Rate Band (£325,000) and Residence Nil Rate Band (£175,000) remain unaffected.

Planning Opportunities:

• Act before 6 April 2026 to transfer/gift qualifying assets under the current transitional rules.
• Options include gifts to individuals or trusts – with different control, tax, and IHT considerations.
• Trusts may also qualify for their own £1 million allowance, offering additional flexibility.
• Review your Will to ensure it’s aligned with the new rules and no allowances are wasted.

Get in touch with us today to discuss your individual circumstances and how best to plan ahead of the April 2026 changes. We’re here to help you make the most of the current rules before they expire.

Early planning can help preserve significant value and minimise future tax exposure. You can download the full PDF explanation HERE