14 Jul 2025
Are you going to be impacted by upcoming changes to Inheritance Tax, specifically Business Property Relief (BPR) and/or Agricultural Property Relief (APR)? Download our PDF or read on…
Currently, on death, the transfer of business assets such as trading company shares and farms are, in many cases, covered in full by a relief called Business Property Relief (BPR) and/or Agricultural Property Relief (APR). This means when an owner dies that asset can often move to the next generation completely free of Inheritance Tax.
In the 2024 Autumn Budget the Government announced plans to change this relief from 6 April 2026 such that only the first £1 million of qualifying assets will obtain 100% relief. Over and above that amount, the relief will only be available at 50%. To put this into context, a business worth £5M being passed to an adult child on death today may have no Inheritance Tax bill, but the bill could be £800K where the death occurs after 6 April 2026. This has implications for the cashflow of the family and business security as this tax bill must be funded from somewhere.
If you think you may be affected by these changes, please get in touch. Don’t delay – assuming the rule changes are enacted from 6 April 2026 as proposed, this only gives you nine months to take action.
Galloways has a dedicated tax team who can offer advice and minimise your tax liability, keeping your money in the family. Get in touch
