Owners of family businesses have some options after major erosion of tax advantage of business property relief (BPR) and interaction with inheritance tax, explain Julia Lewis, partner, and Daniel Watson, senior associate at Hunters Law LLP
Much emphasis has been focused on the impact of the agricultural property relief (APR) and business property relief (BPR) changes to farming businesses. Comparatively little has been written about the changes to the BPR regime and their likely impact on non-farming business owners.
This article will primarily focus on some planning considerations for tax and succession for such family businesses in light of the changes to BPR. It is assumed that any planning will take place after 6 April 2026 and that the government’s current position will remain unaltered as set out in Finance Act 2026.
BPR – general planning points to consider
As from 6 April 2026, BPR and APR will be available at 100% on qualifying property subject to a combined limit of £2.5m of BPR and APR property for inheritance tax (IHT) purposes.
