Business Property Relief: changes from 2026

New restrictions to Business Property Relief (BPR) are set to apply from 6 April 2026. If you’re a business owner who’s thinking about inheritance tax (IHT) planning, it’s important to understand the changes and to consider your options.

In our new video, tax specialists Susie Mullin and Jon Barratt take you through:

How BPR is expected to change from April 2026
How the BPR change will impact shares listed on AIM
Other key points to be aware of
Areas we’re advising clients on – relating to BPR, IHT and wider estate planning

Update: Autumn Budget 2025 and transfer between spouses

When the changes to BPR and agricultural property relief (APR) were published in the draft legislation for Finance Bill 2025-26, it was stated that the £1m 100% relief allowance would not be transferrable between spouses. In Autumn Budget 2025, following the recording of our video, this was revised: the £1m 100% relief allowance will be transferable between spouses. This will apply even where the first death occurred before 6 April 2026.

Questions you may be asking in light of the BPR changes

Do I qualify for BPR?
Is now an appropriate time to settle shares into trusts?
How much should I put into trust for my children?
How should I be planning for a business sale?
If I don’t want to settle assets into a trust, should I be giving assets (including shares in family business) away to my children now?
As giving shares away is a disposal for capital gains tax (CGT) purposes, do I qualify for any CGT reliefs?
My will was written with BPR in mind. How should I update it?
I have insurance on the basis that I qualify for BPR. Do I now need more insurance to cover my estate in the event of my death?

Read our article for more details about the BPR changes, what they mean in practice and what you should be thinking about now.

How BKL can help

Our specialists in tax, IHT, trusts and estates help entrepreneurs, families and trustees to understand UK tax complexities and structure their estates tax-efficiently. This covers all points in the business lifecycle, and all aspects of your business ownership and wealth.

We can explain how the BPR changes will impact your unique situation, guide you through the factors that may affect your tax liability, and advise you on preserving and passing on as much of your wealth as possible. This includes helping you and your spouse to write and update your wills.

For a chat about how we can help you with IHT and estate planning, get in touch with Ryan Bevan, Susie Mullin or Jon Barratt, or send us an enquiry.