From 6 April 2026, the most significant changes to Inheritance Tax in a generation will come into effect, particularly impacting Business and Agricultural Relief. For founders, shareholders, and family offices, the implications are far-reaching.
In this short video, Nick Pheasey explains what’s changing, why it matters, and what steps you should be considering now to protect your business and your legacy.
This is a once-in-a-generation opportunity to act before the rules change. Don’t leave it too late. Watch the video now.
The most significant changes to inheritance tax for a generation are coming on the 6th of April 2026.
If you are the founder or shareholder of a privately owned business, you need to consider your position now and whether you need to take action before 6th of April next year.
The changes to inheritance tax business and agricultural relief are transformative. Before the changes, business owners could have passed the majority of their business ownership on death without paying inheritance tax.
But from April 2026 that all changes and only £1 million can pass inheritance tax free with 20% tax on the balance.
This is an issue for the business as well as the shareholders and there's going to be substantial inheritance tax liabilities after death. The business will often be called on to fund these.
So right now there is a window to take action before the changes take effect. These decisions need careful advice and consideration and really cannot be rushed. So please start the process now.
If you're a business owner, you need to decide if your goal is to sell or to involve future generations.
My clients with no plans to sell, they're considering transferring whole or part ownership of the business to the next generation family members, which can involve direct gifts or family trusts created during lifetime.
But these are not simple decisions and will have long term consequences.
So make sure your advisor understands all of the issues, talk as a family about all of your expectations, and make sure you have enough time to take proper advice and action accordingly.
In my experience, the most successful clients are those that take the time to consider these issues carefully as a family before making the decisions.
This is a once in a generation change of inheritance tax, and there's still time to take action before the changes take effect on 6th of April, 2026. You do need to start now.
If you'd like expert advice on the matter, please do get in touch.
Need help navigating the 2026 inheritance tax changes? Our private client and family office specialists can help you plan with clarity and confidence. Speak to our team for more advice.
