From 6 April 2026, the Government will reform the generous Inheritance Tax (IHT) reliefs currently available on qualifying business and agricultural property.
Key changes:
- Up to £1 million of combined qualifying business and agricultural property will still attract 100% IHT relief (Inheritance Tax Act 1984, ss. 105 & 121).
- Value above this threshold will only qualify for 50% relief, resulting in a potential 20% IHT charge.
- Where property is part business and part agricultural, the £1 million allowance will be applied proportionately.
These reforms will significantly impact business owners and families with high-value or complex estates. Existing succession plans may no longer provide the tax protection they once did.
Now is the Time to Review Your Plans
There is still an opportunity—until April 2026—to:
- Reassess business succession arrangements (Finance Act 2025, para. 28).
- Explore trusts and lifetime gifts as part of your estate planning (IHTA 1984, s. 65).
- Ensure your Will accurately reflects your wishes and family circumstances (IHTA 1984, s. 8D).
We’re Here to Help
At McHale & Co, we work closely with clients and their advisers to ensure the legal elements of their estate planning are robust, well-considered, and integrated into their wider strategy. Call 0161 928 3848 to speak with our Private Client team today to understand how these changes could affect you or your clients
