April Changes to Inheritance Tax for Business owners

8 weeks until changes to Business Property Relief apply: Why early planning matters

From April, the UK government will introduce significant reforms to Inheritance Tax (IHT) relief for Business Property Relief (BPR) and Agricultural Property Relief (APR).

These changes will materially affect how business and agricultural assets are treated on death — and, for many UK business owners, will introduce significant inheritance tax exposure to the business for the very first time.

Key Changes to BPR and APR from April 2026

• £2.5 million cap on 100% relief

  100% BPR and APR will be capped at a combined £2.5 million per individual. Any qualifying value above this threshold will be exposed to IHT.

• IHT will apply at two rates of 20% and 40% depending on asset type

  Certain assets exceeding £2.5 million will be taxed at an effective IHT rate of 20%. All other assets will attract IHT at 40%.

• “Stealth Extraction Tax”

  To compound matters, there may be further personal tax due upon extracting the cash from the business to pay the death tax bill.

What This Means for Business Owners

For owners of asset-rich trading businesses, farms, or long-established family enterprises, the effect of these changes may create material tax liabilities that were not previously anticipated, leading to forced sales, closures, and personal/family upheaval.

The Importance of Early Planning

These changes will take place at the end of next month. Early, considered action may allow business owners to:

• Maximise available reliefs

• Review ownership, succession and dividend strategies

• Align wills and shareholder arrangements with long-term objectives

• Reduce exposure to death taxes and related personal tax on extraction

As is often the case, those who plan will likely benefit the most.

If you would like to review how these changes may affect your business or family wealth, a structured review well ahead of next month can help ensure your planning remains robust, proportionate, and aligned with your objectives

How Qubic Can Help

At Qubic, we specialise in helping business owners and advisers navigate complex tax reforms with confidence. Our team provides tailored strategies that are aligned with related government and HMRC policies covering:

• Succession planning and company ownership restructuring Employee Ownership Trust advisory and compliance reviews

• Wealth and legacy preservation through appropriate trust and corporate solutions

• Valuations, governance, and long-term asset protection

In a shifting tax landscape, proactive planning is essential. If you would like a confidential review of how these changes may affect your business or clients, our team is here to help.

Protect your wealth. Preserve your legacy. Plan with confidence.

Speak to Qubic today.

For more information on our tax planning services and to discuss your options with one of our team, simply click the link below:

Get in touch: If you're ready, let's talk!

Email: info@qubic-group.com

Call: 0191 232 2001