💤 Final Opportunity: Protect Your Business from the April 2026 IHT Changes

Why business owners must act before 20 March 2026 to secure valuable tax relief

⚠️ A major tax change is coming – and it’s being underestimated

From 6 April 2026, the government is fundamentally changing how Inheritance Tax (IHT) applies to business owners.

For years, trading businesses have benefited from 100% Business Relief (BR) – allowing many owners to pass their companies to the next generation free of inheritance tax.

That protection is now being restricted.

Under the new rules:

• The first £1 million of qualifying business assets will continue to receive 100% relief

• Any value above that will receive only 50% relief

This effectively introduces a 20% tax on business value above £1 million.

💥 What does this mean in real terms?

Let’s take a typical example:

• Business value: £6 million

• Under current rules: potentially £0 IHT

• Under new rules:

  • £1m → tax-free

  • £5m → 50% taxable = £2.5m exposed

  • IHT at 40% = £1 million tax bill

👉 That’s £1 million lost to tax – often unnecessarily.

😴 The good news — you still have a window to act

If you act before 6 April 2026, you can still use the current rules.

This means it is possible to:

• Transfer shares into a discretionary trust

• Lock in the existing 100% Business Relief

• Avoid any immediate IHT

• Defer any capital gains tax using hold-over relief

• Remove future growth from your estate entirely

Done properly, this can protect significant value for your family.

⏳ Why the real deadline is 20 March 2026

Although the legislation changes on 6 April 2026, in practice:

👉 You cannot leave this until the last minute

To implement this planning correctly, we need time to:

• Review your company structure

• Confirm eligibility for Business Relief

• Obtain a professional valuation

• Draft and agree the trust documentation

• Prepare CGT hold-over relief claims

• Coordinate with solicitors

• Execute the transfer properly

That’s why we are asking clients to contact us no later than 20 March 2026.

After that point, there may not be enough time to implement the planning safely and effectively.

🧠 How the planning works (in simple terms)

The most common strategy involves:

Step 1 – Create a discretionary trust

A flexible structure allowing trustees to benefit your family.

Step 2 – Transfer shares into the trust

Usually all or part of your trading company.

Step 3 – Claim tax reliefs

• Business Relief (IHT) → no immediate inheritance tax

• Hold-over relief (CGT) → no immediate capital gains tax

Step 4 – Future protection

• The value transferred is outside your estate

• Any future growth is also outside your estate

📊 Real-world outcomes

👉 Potential saving: £400,000 – £1,000,000+

💰 What does it cost?

Typical implementation costs:

• Valuation: £5,000 – £10,000

• Legal work: £4,000 – £6,000

• Tax and structuring: £3,000 – £5,000

👉 Total: £10,000 – £20,000

Compared to potential savings of £1 million+, this is one of the highest-return planning opportunities available.

⚠️ Important risks to understand

This is powerful planning — but it must be done properly.

Key considerations include:

• Ensuring the company qualifies as a trading business

• Avoiding “gift with reservation” issues

• Proper valuation of shares

• Correct execution of legal documentation

• Submission of hold-over relief claims

• Ongoing monitoring of Business Relief eligibility

This is not a DIY exercise — it requires coordinated professional advice.

💬 A word from Jason Seagrave

“This is one of the biggest planning opportunities I’ve seen in decades.

But it’s also one of the most time-sensitive.

If you act early, we can protect your business and potentially save your family over a million pounds in tax.

If you leave it too late, that opportunity is gone.”

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🕓 What you should do next

If you own a business worth more than £1 million:

👉 Do not wait
👉 Do not assume it won’t affect you

Instead:

✅ Book a confidential strategy review

We’ll:

• Assess your position

• Estimate your potential saving

• Explain your options clearly

💤 Final thought

You’ve spent years building your business.

With the right planning, you can ensure it benefits your family — not the taxman.