The £1m allowance for business property relief

With major changes to inheritance tax for owner managed businesses due in less than a year and no final legislation yet, Stephanie Webber ACA CTA, senior technical writer at Croner-i, explains what we know so far, raising questions about the position of chargeable transfers

With effect from 6 April 2026, it is expected that the total (combined) value of business and agricultural property qualifying for relief at 100% will be limited to £1m, with the balance eligible for relief at only 50%.

The changes were described in a policy paper published at Autumn Budget 2024, with further clarification in a limited consultation document on the interaction of the changes on trusts launched in February 2025.

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