2026 Inheritance Tax Reforms – What They Mean for You

Inheritance Tax IHT is a tax on the estate (property, money, and possessions) of a person who has passed away. Real estate and finance. Notes, calculator and houses on a table

Following the Government’s Autumn Budget announcement last year, significant changes to Inheritance Tax (IHT) rules are set to take effect from April 2026. These reforms could dramatically alter how estates are taxed, particularly those involving agricultural and business assets.

03.11.2025

What’s Changing?

Currently, Agricultural Property Relief (APR) and Business Property Relief (BPR) can provide up to 100% relief from IHT on qualifying assets. From April 2026, the Government intends to revise these reliefs, potentially reducing or removing the exemptions many estates currently rely on.

To explore the proposed changes in more detail, please refer to our Inheritance Tax brochure. 

Why It Matters

If your estate includes a farm, business, or rural property, these reforms could result in a significantly higher tax liability. In some cases, families may be forced to sell assets to cover the tax bill.

Take the example of Cassiobury Park Exotic Zoo in Watford, where owner Steve Cardell is selling his 15-acre farm, valued at approximately £2.75 million. Under the new rules, the inclusion of this property in his estate could substantially increase his IHT exposure.

While selling assets may be one solution, there are other planning strategies worth considering, such as lifetime gifting and restructuring ownership. These options can be complex and may trigger other tax implications, so professional advice is essential to ensure your estate is protected.

What Should You Do Now?

If you’ve already implemented tax-efficient structures, now is the time to review them. Planning tools that are effective under current legislation may not offer the same protection after April 2026.

Assets most likely to be affected include:

  • Farms and agricultural land
  • Rural estates
  • Family businesses

How We Can Help

Our specialist Estate Planning team is here to guide you through the upcoming changes and help you safeguard your legacy.

For tailored advice, please contact any of our South Coast Private Client Team. 

You’re also invited to attend our IHT Roadshow, running nationwide from 30 September to 13 November, where our experts will discuss the 2026 IHT reforms and the estate planning challenges they present.

Key Contacts

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