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 cannot be transferred 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?
BPR 360 covers you from every angle. Through multidisciplinary collaboration between four expert advisory firms, we provide unified, strategic advice across every area impacted by the BPR reforms. From tax and legal structuring to succession planning and valuation, we help you navigate the risks and opportunities these changes present. Our joined-up approach ensures that nothing is missed, and every angle is considered, giving you clarity, confidence and control at a time of significant change.
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 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 IHT-free potential.
DSA Prospect
Quantification of tax risk and modelling
For the first time, your business needs a mandatory IHT-compliant valuation. We quantify the precise tax liability on your excess value and advise on cleaning up your balance sheet to avoid the loss of any BPR relief due to surplus cash or investment assets.
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.
What’s next?
Following the budget, experts from all of our eco-system partners will be joining forces to help unpack the BPR and IHT changes.
Register for our online 360 debrief event now.