Protecting your future
An eco-system designed for family businesses and high-net-worth individuals facing unprecedented Inheritance Tax (IHT) risks.
What's changing?
Under the current rules, Business Property Relief (BPR) can provide 100% relief from Inheritance Tax (IHT) on qualifying business assets, meaning no IHT is payable on their value.
From April 2026, this will change.
A new £1 million cap will apply for 100% relief, with any excess only qualifying for 50% relief. This means half the value above the threshold will be subject to IHT at 40%, resulting in an effective 20% tax charge on that portion.
Unlisted shares will also drop to 50% relief, and the new allowance will be transferable between spouses.
Example – You own £5 million in shares of a BPR-qualifying trading business
Under the new rules:
- £1 million is fully relieved (0% IHT).
- The remaining £4 million receives 50% relief, so £2 million is taxable.
- £2 million × 40% (standard IHT Rate) = £800,000 IHT liability.
This equates to a 20% effective tax rate on the £4 million excess.
Who will be impacted?
Family-run businesses, holding significant value in unlisted shares and property.
These changes could lead to substantial tax liabilities for family-run businesses, especially when passing the business to the next generation. Changes have the potential to force asset sales and disrupt succession plans.
How can we help?
With four pillars of defence, BPR 360 covers you from every angle. The complexity of BPR reform demands a joined-up, multidisciplinary strategy. The BPR 360 Ecosystem brings together four specialist firms to deliver a complete defence across legal, tax, estate and financial planning.
White & Black
Corporate structure, compliance, and long-term business continuity
We use legal restructuring (like re-classifying shares) to allow you to ring-fence the IHT liability by transferring value to the next generation without surrendering control of your trading business. Delaying means closing the window on the most flexible options.
Hedges Law
Family’s personal estate planning
The £1 million cap is lost forever if your Will is not updated. We ensure your family’s documents are legally structured to guarantee you utilise both spouses’ allowances, securing the full IHTfree potential.
DSA Prospect
Quantification of tax risk and modelling
For the first time, your business needs a mandatory, formal valuation specifically for Inheritance Tax purposes. What we do for you is two-fold: We calculate your tax risk and advise on optimising your balance sheet to ensure you maximise any Business Property Relief
Bowmore Wealth Group
Financial implementation and ongoing personal wealth strategy
Our role is to translate legal and tax plans into secure, implemented financial strategies. We provide detailed cash-flow modelling to ensure your projected IHT liability is fully covered. This allows us to arrange tax-advantaged solutions that deliver the required cash (via trust) to your executors, safeguarding the business’s capital and allowing the next generation to inherit the business intact.
Download our BPR 360 Guide
Download our full BPR 360 guide now for more information about the incoming changes, how they will impact your business and steps you can take to mitigate the risk.