Inheritance Tax (IHT) changes are coming
By 6 April 2026, providing the Government makes no further changes to their announcements from last year’s Autumn Budget, the number of IHT liable estates is set to increase by 50% to over 37,000 by 2027.
With less than a year remaining to assess IHT liabilities and take action before the upcoming reforms take effect, time is running out to safeguard your estate.
Irwin Mitchell has assembled a dedicated team of specialists to provide expert guidance to business owners, those holding shares in trading companies, and agricultural landowners across the UK.
It is imperative to act now to ensure the best possible outcome and protect your assets before it’s too late.
Impacted estates may need to consider:
- Private Client: Trusts, gifting, will-writing, estate planning, wealth protection, succession planning.
- Corporate: Shareholder agreements, exit planning, business restructuring.
- Family Law: Pre and post nuptial agreements, mediation and more.
Key Reforms to Agricultural and Business Property Reliefs (APR & BPR)
Current reliefs for APR & BPR offer up to 100% relief from IHT on qualifying assets. However, from 6 April 2026, the following changes apply:
- Million Cap: The first £1 million of combined qualifying agricultural and business assets per individual will continue to receive 100% relief.
- 50% Relief Above Cap: Assets exceeding the £1 million threshold will receive only 50% relief, effectively subjecting the excess to a 20% IHT rate.
- AIM Shares: Shares listed on the Alternative Investment Market (AIM) and similar markets will receive only 50% relief, regardless of value, and are excluded from the £1 million cap.
- Trusts: Trusts will also be subject to the £1 million cap, with reliefs allocated across multiple trusts established by the same individual after 30 October 2024.
What happens if you don’t review your situation?
These changes are expected to significantly impact family farms and businesses, potentially forcing the sale of assets to meet tax liabilities.
Proactive Steps
With major changes to APR and BPR on the horizon, urgent action is needed to safeguard your assets. Time is running out, and we advise discussions about the impact of these reforms and action must take place well before April 2026 to avoid costly consequences. By seeking expert advice and implementing proactive estate planning strategies, families, business owners and landowners can minimise inheritance tax liabilities and protect their wealth - helping you to secure your beneficiaries' future and preserve the legacy you’ve worked hard to build.
Get in touch
To discuss how these changes might affect your clients and to explore proactive planning strategies, please contact your Irwin Mitchell advisor.
