Updating wills and trust structures, obtaining accurate asset valuations and evaluating alternative instruments such as life insurance policies or family investment companies are steps that many entities are already considering.
The United Kingdom is preparing for a revolution in the taxation of business and agricultural inheritances . With the Budget of 30 October 2024, the government announced far-reaching changes to inheritance tax, business property relief, and agricultural property relief . This change, effective 6 April 2026, will force many entrepreneurs, both resident and non-resident, to radically rethink their succession strategies .
The most significant change concerns the exemption cap : from now on, the full 100% benefit will be limited to the first £1 million of combined business and agricultural assets for each individual or existing trust. Beyond this threshold, the exemption will be reduced to 50%, with an effective tax rate of 20% on the excess value. Further complicating the situation is the fact that this new limit cannot be transferred between spouses , unlike other inheritance tax exemptions. In the past, exemptions were unlimited as long as the legal requirements were met: the scope of this restriction is therefore clear.
