The Strategic Perspective

Business Owners: Why the £1M IHT Relief Cap Demands Immediate Action

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 potential IHT liability on death 

For many business owners, this change could mean a six-figure tax bill that must be settled before the business can be passed on. This is not just a tax issue – it’s a business continuity risk.

At Burgis & Bullock, we urge business owners to act now. The first step? Understand your business’s current valuation. If your business is worth more than £1 million, your estate could face a substantial IHT charge, potentially forcing the sale of assets or shares to cover the tax.

Key actions to take now:

  • Commission a professional business valuation.
  • Review your estate and succession plans.
  • Explore lifetime gifting or trust structures to mitigate exposure.

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

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✨Are you a sole trader or landlord with a total income over £30,000?

next free event - 16.10.25

From April 2026, Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) will change the way sole traders and landlords report their income to HMRC. Whether you’re a seasoned business owner or just starting out, this event is your opportunity to get ahead of the curve.