Major IHT Relief Reforms Are Coming – What It Means for Succession and Estate Planning
- CHAMBERS
- Jun 14
- 2 min read
Inheritance Tax Relief Reforms: Strategic Implications for Estate and Succession Planning
Significant changes to the Inheritance Tax (IHT) regime were announced in the Autumn Budget on 30 October 2024. Most notably, a proposed overhaul of Agricultural Property Relief (APR) and Business Property Relief (BPR) is set to take effect from 6 April 2026.
Under the new framework, estates will only be able to claim 100% relief on the first £1 million of combined qualifying agricultural and business property. Any value above this threshold will be eligible for 50% relief before being potentially subject to IHT at the full 40% rate.
These reforms will materially impact families and business owners with high-value estates. While the Treasury expects the majority of estates to remain unaffected, HMRC projects that thousands of larger estates - particularly those involving farms and privately held businesses - could see a significant increase in tax liability.
Crucially, the reforms also introduce a number of practical challenges:
Strategic restructuring of estate and IHT planning
Financing the IHT settlement
Impacts on succession planning and business continuity
The need for timely Will reviews and amendments
With the policy set to take effect in less than two years, and some technical guidance still outstanding, there is a real risk that individuals—particularly in later life—may not have adequate time to implement effective planning strategies.
Given the complexity and potential financial exposure, individuals and families with qualifying assets are strongly advised to seek legal and tax advice as soon as possible.
This comprehensive research briefing from the House of Commons Library provides a summary of the proposed reforms and their fiscal and legislative context:
Read here:
Comments