03 Feb 2026
We wrote in our news around IHT reform in November, the need to review succession plans, check business assets & trust planning, and potentially update wills before April 2026. Most of all, we stressed if you have concerns, seek professional advice about how these changes may impact you.
The good news is the £1m ‘allowance’ for 100% relief on business and agricultural relief will be increased to £2.5 million when the regime takes effect on 6th April 2026. This allowance is set to remain fixed at this level until at least 5th April 2031.
As the Autumn 2025 Budget announced any unused allowance would be made ‘transferable’ on the death of the surviving spouse/civil partners, the net effect is that up to £5m of business and/or agricultural assets will be able to pass free of inheritance tax (IHT) for married and civil partners.
What eventually caused the Government climbdown is unclear, and whilst its good news for farmers and business owners, it does not change the fact that many of them will have already spent time and money planning for a much harsher tax regime. This certainly highlights one of the dangers of making big financial decisions based on impending tax changes that have not yet been brought into law.
So, if you’re a business and have these updated changes at the front of your mind, please speak to our team at Wealth Professional.
