Inheritance Tax Changes Now in Force: What the APR and BPR Reforms Mean for Your Estate

Inheritance Tax Changes Now in Force

As of 6 April 2026, significant reforms to Agricultural Property Relief (APR) and Business Property Relief (BPR) have come into effect, with important implications for individuals, families, and business owners.

These changes represent a major shift in how certain assets are treated for inheritance tax (IHT) purposes and may affect existing estate planning arrangements.

Key Changes to Be Aware Of

• A £2.5 million cap per individual now applies to assets eligible for 100% APR/BPR
• Assets exceeding this threshold will receive 50% relief only
• The reforms impact certain shareholdings, including some AIM-listed investments
• Trusts are now subject to the same relief cap
• Eligible IHT liabilities can be paid in 10 interest-free annual instalments

For many individuals, particularly business owners and those with agricultural assets, these changes could result in increased inheritance tax exposure. Structures and plans that were once highly efficient may no longer deliver the same level of protection.

As a result, it is increasingly important to ensure that your estate planning remains aligned with current legislation and your long-term intentions.

What You May Need to Review

In light of these developments, you may wish to revisit:

• Your Will and succession plans
• Any trusts currently in place
• Ownership structures of key assets
• Gifting strategies and lifetime transfers
• Whether your assets still qualify for available reliefs

Why Proactive Planning Matters

Proactive planning is essential to mitigate potential tax liabilities and to ensure your estate is structured in the most effective way. Reviewing your arrangements now can help provide clarity, protect wealth, and support a smoother transition for future generations.

Working with legal professionals, alongside financial advisers where appropriate, can help ensure that your plans remain robust, compliant, and tailored to your personal circumstances.

Speak to Endeavour Law

If you would like to explore how these changes may affect your estate planning, our private client specialists at Endeavour Law can help you make informed and confident decisions.