IHT Relief Cap Eased Ahead of April 2026

The government has revised its proposed inheritance tax reforms affecting Agricultural Property Relief (APR) and Business Property Relief (BPR). The 100% relief cap is now set at £2.5m per person from 6 April 2026, offering significantly more protection for family farms and trading businesses.

IHT Reforms Revised

Proposed changes to #inheritance #tax reliefs for #farms and #family #businesses have been among the most contentious measures announced in recent Budgets. Following sustained criticism particularly from the agricultural sector the government has now confirmed a significant softening of its original plans.  So what has changed?

Gift relief set for reform from 2026

How gift holdover relief currently works
Gift holdover relief allows capital gains tax (CGT) to be deferred when certain assets are given away, provided both the person making the gift and the recipient jointly elect for the relief. In the context of shares in a trading company, this relief is commonly used by owner-managers passing their business to the next generation, enabling a transfer without an immediate CGT charge.

Sneaky Tax Change is a Blow for Side Hustles

Sneaky #Tax Change is a Blow for Side Hustles
From the 2029/30 tax year onwards, HMRC plans to make PAYE coding adjustments mandatory for eligible taxpayers. Crucially, the change goes even further: the first year of the new system will not only collect any underpayment from the prior year but will also collect an estimated liability for the current year.