Mary Perham and Tristan Tydings write for IFA Magazine on business property relief changes
From April 2026, Business Property Relief (BPR) will change. On 23 December 2025, the UK government announced that the 100% inheritance tax (IHT) relief allowance for qualifying business assets will be £2.5 million per person from April (up from the £1 million previously announced).
Despite the rise in the Business Property Relief allowance to £2.5 million from April 2026, business owners with larger shareholdings still face a potential 20% inheritance tax charge on excess value and should review succession and estate planning ahead of the deadline.
Mary Perham, Senior Associate, and Tristan Tydings, Associate, in our Private Client team, write for IFA Magazine on why the £2.5 million BPR allowance still demands action befor April:
While the increase is a welcome improvement from the initial 2024 Budget proposals, the rules from 6 April 2026 remain more restrictive than the current regime. Not everyone is safe.
"Many owners of mid‑sized trading businesses can breathe a sigh of relief. Provided they have a good, well implemented succession plan, the uplift may keep them fully sheltered from IHT. However, for business owners with personally held qualifying business assets worth more than £2.5 million, there is still a meaningful liability to plan for to ensure the stability of their business.
Read the full article in IFA Magazine here.
