From April 2026, inheritance tax changes will restrict the transferability of the £1m relief for qualifying business or agricultural assets. There will be 100% relief on the first £1m and 50% on amounts exceeding this. Each individual will have their own £1m allowance. The spousal exemption remains, allowing qualifying assets to pass to a spouse without incurring tax. However, unused allowances are not transferable, limiting a spouse's benefit when passing assets to children. This adds complexity to the inheritance tax landscape, particularly affecting business owners and farmers.
"Many families were hoping that the draft legislation would allow for the £1m allowance to be transferable, bringing this into line with the rules on the nil-rate band and residence nil-rate band."
"Unfortunately, this will add further complication to an already complex inheritance tax regime and may penalise the unwary."
Collection
[
|
...
]