Six things you must do to plan for changes to BPR
Changes to Business Property Relief, announced in last October’s Budget have torn up the succession plans of many family businesses and left several facing potentially enormous future liabilities. Pending any last-minute reprieve, delay or amends to the policy, the new rules on BPR will take effect in April 2026. That means there is still time to plan for the changes but, the clock is ticking. We asked FBUK’s network of corporate partners, specialists in tax and legal planning, for their tips on what you should do now to mitigate next year’s change. 1) Get a valuation. This has to be the first step any business owner or shareholder must take. Without this, there is no way of knowing how the policy change will impact your business and your family. Calculate the inheritance tax (IHT) liability due if a shareholder died now, then recalculate based on the £1 million threshold that will be applied if that death were to happen post April 2026. A critical part of this is to review the ownership structure and who owns
what. This may sound ridiculous but it isn’t always as clear as it might be. The ‘boss’ may not be the [only] owner! 2) Advice and advisors . Look critically at your advisers and ask yourself: are they up to the job? Those that you may have used for decades and are used to dealing with the everyday needs of the business, may not be the best for looking at the bigger picture of succession planning and strategic issues that affect more than one family generation. Ultimately, once you have gone through a pre / post April 2026 valuation exercise, if you are not happy with your position, then you should be taking advice on how to mitigate increased liabilities.
next generation (see note on gifts). Consider whether the company constitutional documents need updating - changes to articles, shareholders agreements etc. Consider mechanisms that will also protect individuals – things like pre and postnuptial agreements, family trusts, and corporate holding structures are essential tools to keep wealth secure across generations. With IHT burdens rising, there’s also more at stake in the event of family disputes or mismanagement. Protection planning isn’t just for the ultra-wealthy – it’s about preserving what’s built. If succession planning answers “who gets what,” asset protection ensures “they keep it.” 3) Consider gifts. One thing the Autumn Budget didn’t change was that if a person gifts away an asset (such as shares in a business) and survives for 7 years from the date of gift, then those shares are outside of their estate for IHT purposes. So, gifting remains a valuable route to mitigate IHT. Gifts made before April 2026 can still qualify for up to 100% relief – provided
This may be through accelerated transitioning of the business to the
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