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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