If Business Property Relief (BPR) features in your existing estate plan, the changes signalled for April 2026 are worth close attention. In practice, the changes point towards closer scrutiny of eligibility and, for some estates, a higher inheritance tax (IHT) exposure.
What Is Being Proposed
- Draft legislation indicates a new £2.5 million cap on the 100% BPR rate from 6 April 2026. Any unused portion of that allowance would be transferable between spouses and civil partners.
- Shares in AIM-listed companies (the Alternative Investment Market) and Enterprise Investment Scheme (EIS) companies would no longer attract 100% relief; instead, they would be eligible for 50% relief, increasing potential IHT on portfolios that rely heavily on such holdings.
- The current two-year ownership condition may be lengthened or recalibrated, which would affect the timing of lifetime transfers and so‑called “death‑bed” planning.
These measures are currently proposals. The final rules and provisions will depend on the legislation as enacted, so it is worth paying close attention to the news in the coming weeks.
How This Might Affect You
For owners of trading businesses, private company shares or AIM/EIS portfolios, the proposed cap and reduced relief rates could leave a larger slice of the estate exposed to IHT. Couples may wish to consider how the cap and the transferability between spouses and civil partners interact with existing wills, survivorship arrangements and succession plans. Portfolios that lean on AIM/EIS for BPR may also need attention, and the timing of gifts or reorganisations may require adjustment if the ownership period changes.
Next Steps to Consider
Keep plans under review as the legislation progresses. Mapping the potential IHT position under the proposed rules, may help preserve flexibility and avoid rushed decisions as April 2026 approaches.
Contact our Solicitors in Uxbridge
If you would like to arrange an appointment to discuss your estate planning needs and explore the best way forward, please get in touch. You can call our friendly lawyers in Uxbridge on 0330 175 5655 or email info@bglaw.co.uk.
