The UK government’s October 2024 Budget set out significant changes to Inheritance Tax (IHT), due to come into effect from April 2026. These changes will have a particular impact on owners of trading businesses and farmland.
Under the new rules, reliefs will be capped at 100% for the first £1 million of qualifying assets. For any value above that threshold, the relief will reduce the IHT bill by 50% – still below the standard 40% rate, but notably less generous than before.
This means that families who may not have previously been affected by inheritance tax could now find themselves facing a tax liability — and with it, new estate planning challenges.
If you own a family business, agricultural land, or other qualifying assets, understanding what these changes mean for you is essential. The right planning now can help minimise future tax bills, protect your estate, and ensure that your legacy passes on smoothly to the next generation.
Check out our guide in the link below.