Stone King: The Budget and Inheritance Tax (IHT)

The much awaited first budget of the new Labour Government did not disappoint in bringing dramatic changes.

The most significant reforms were announced for Inheritance Tax (IHT). The freeze of the IHT threshold known as the Nil Rate Band (325k) has been extended to 2030, meaning more estates will be drawn into paying IHT.

There will also be reform of Agricultural Property relief (APR) and Business Property Relief (BPR). From April 2026 there will be only 100% relief on the first £1m of combined APR/BPR assets and 50% thereafter. Additionally, BPR on ‘non listed’ shares such as AIM will be restricted to 50%. Undrawn pension funds and death benefits will also become subject to IHT from April 2027.

If you need legal advice around any of the changes or want to further understand how they affect you then please get in touch.

For more information call 01225 337599 or email info@stoneking.co.uk
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