Inheritance tax on businesses. Changes coming April 2026

[pentel]

Ever since the proposal that farmers will have to pay 20% IHT on farms on estates valued over £1m there have been a concerted effort to protest about this and the impact this will have on the viability of farms in the future.

What has received little or no press time or protest is that this will also apply to businesses. I would argue that this is actually more of a problem than the effect on farmers and may lead to a lot of businesses either closing or there being a huge effect on employment / viability of businesses.

Is anyone planning for this and if so what?

 

[Ozzy]

Is anyone planning for this and if so what?

Yep, I'm planning to get out as I'm not leaving my kids with a business they don't want and would have no interest in but be taxed for.

 

[JEREMY HAWKE]

If they want to charge IT on a few rusty Transits then I won't worry I will be dead

 

[MikeJ]

I guess the difference is farms are high capital/low profit companies, and tend to be handed down through generations. I doubt very few companies are handed down in that way and valued at over £1million. Those that are will tend to be passed on while the parent is still alive.

 

[Byzantium]

When I sell up and go it will be without a care as to any tax implications I may have as I never intend to come back.

 

[syedsheraz]

The forthcoming inheritance tax changes in April 2026, particularly regarding Business Property Relief (BPR) and Agricultural Property Relief (APR), might lead to a shift in the way family businesses transfer assets. It is indeed advisable to get the assistance an Accountant for proper planning and thus reducing tax liabilities that may arise. Are there any discussions happening around these changes?