Mike Barrington and Mary Perham write for Tax Adviser on what the proposed changes to business property relief mean for investors and entrepreneurs, and for their businesses
In an article for Tax Adviser, Senior Associates, Mike Barrington and Mary Perham, consider what the proposed changes to business property relief mean for investors and entrepreneurs, and for their businesses.
From April 2026, the relief will be significantly reduced, necessitating a re-evaluation of business protection and long-term stability strategies.
Currently, business property relief provides 100% relief on qualifying business interests, but under the new rules, only the first £1 million of assets will qualify for full relief, with any excess receiving 50% relief. This poses a substantial inheritance tax liability for business owners.
The changes will require a proactive approach to estate and succession planning. Professional advice will be essential in modelling the effects of the changes and exploring mitigation strategies to minimise the impact of the new regime.
In the article they cover:
- What is changing for business owners?
- Should business owners gift their interests now?
- Practical considerations for business owners and directors
Read the full piece in Tax Adviser here.
