Autumn Budget: IHT / Estate planning

Today’s Budget introduced a key change for inheritance tax planning: the transferable Agricultural Property Relief (APR) and Business Property Relief (BPR) allowance between spouses and civil partners.

This measure aims to simplify succession planning for families and businesses while reducing costs at the lower end of qualifying estates. However, experts warn that the overall trend is toward tighter reliefs, making proactive planning more important than ever.

Andrea Jones, Head of Irwin Mitchell’s Probate Client Advisory Team, said: 

"The change to make the allowance for 100% APR/BPR relief (the cap coming in from April 2026) transferable between spouses and civil partners is a welcome step. It reduces the complexity and cost of planning for estates at the lower end of qualifying values and brings these reliefs in line with other IHT allowances. However, the overall direction remains clear: reliefs are tightening, and proactive planning is now essential.

"It is worth noting that there are no changes to gifting rules. There has also been no change to the availability of the capital gains tax-free uplift on death. These retained elements, combined with the ability to transfer the allowance for 100% APR/BPR, continue to allow for planning using lifetime restructuring, gifting, as well as Will planning.

"While the government's willingness to listen and adjust is encouraging, the significant changes introduced by the Chancellor's Budget in 2024 begin to come into force from April 2026, and this highlights the need for individuals to take advice and implement planning before then."