Business Owners: Why the £1M IHT Relief Cap Is a Strategic Risk – Not Just a Tax Issue

From April 2026, the UK government will cap full Business Property Relief (BPR) from Inheritance Tax (IHT) at £1 million per person. Any business assets above this threshold will only qualify for 50% relief, significantly increasing the IHT liability on death.

For many business owners, this isn’t just a tax change – it’s a business continuity threat. If your estate faces a six-figure tax bill, your successors may be forced to sell shares, assets, or even the business itself to settle it.

This reform shifts IHT from a distant concern to an urgent planning priority. If your business is valued above £1 million, you could be exposed to a substantial tax charge — one that could disrupt succession, dilute ownership, or damage long-term value.

At Burgis & Bullock, we’re urging business owners to act NOW – not later.

Key actions to take now:

• Commission a professional business valuation
  
• Review your estate and succession plans
  
• Explore lifetime gifting or trust structures
  
• Consider restructuring ownership
  

The earlier you act, the more options you have. Don’t let tax reform dictate your legacy.

If you have any queries, please contact your local B&B office https://www.burgisbullock.com/contact-us/