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However, one of the changes proposed in the Autumn Budget 2024 concerns the Inheritance Tax Business Relief. Effective from April 2026, these types of assets will have reliefs capped at 100% for the first \u00a31 million of qualifying assets. For valuations exceeding \u00a31 million, the relief will reduce the IHT payable by 50%.<\/p>\n
What is Business Relief?<\/strong> Eligibility includes:<\/strong><\/p>\n \u2022 Businesses or business interests (100% relief). To qualify:<\/strong><\/p>\n \u2022 The business must have been owned for at least two years. Additional opportunities<\/strong> Updating your estate plan<\/strong> Key moments to update your plan:<\/strong><\/p>\n \u2022 Birth of a child or grandchild. Securing your business, wealth, and the wellbeing of your family<\/strong> Whether you\u2019re managing a small family-run firm or a thriving enterprise, by engaging with us, we\u2019ll tailor your plan to your unique circumstances.<\/p>\n","protected":false},"excerpt":{"rendered":" Maximise your legacy with smart strategies to save on Inheritance Tax Inheritance Tax (IHT) can significantly lower the value of your estate. Currently, Business Relief (BR) is available to business owners who maintain qualifying business assets for at least two years and continue to hold them until their death.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"_links":{"self":[{"href":"https:\/\/www.broadviewfinancialservices.co.uk\/news\/wp-json\/wp\/v2\/posts\/5080"}],"collection":[{"href":"https:\/\/www.broadviewfinancialservices.co.uk\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.broadviewfinancialservices.co.uk\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.broadviewfinancialservices.co.uk\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.broadviewfinancialservices.co.uk\/news\/wp-json\/wp\/v2\/comments?post=5080"}],"version-history":[{"count":0,"href":"https:\/\/www.broadviewfinancialservices.co.uk\/news\/wp-json\/wp\/v2\/posts\/5080\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.broadviewfinancialservices.co.uk\/news\/wp-json\/wp\/v2\/media?parent=5080"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.broadviewfinancialservices.co.uk\/news\/wp-json\/wp\/v2\/categories?post=5080"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.broadviewfinancialservices.co.uk\/news\/wp-json\/wp\/v2\/tags?post=5080"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nBR reduces the value of a business or its assets when calculating IHT. If eligible, you could currently qualify for either 50% or 100% relief, depending on the ownership and type of asset.<\/p>\n
\n\u2022 Unquoted shares in a company (100% relief).
\n\u2022 Land, buildings, or machinery owned personally but used in the business (50% relief).<\/p>\n
\n\u2022 It must not primarily deal in land, investments, or stocks.<\/p>\n
\nSince 2013, BR-qualifying AIM-listed shares can also be held within Individual Savings Accounts (ISAs), offering a potential way to mitigate IHT while benefiting from ISA tax efficiencies.<\/p>\n
\nLife changes, and so should your estate plan. Regular updates will ensure that everything stays aligned with your wishes and takes advantage of any changes in UK inheritance laws.<\/p>\n
\n\u2022 Changes in marital status (e.g. marriage, divorce).
\n\u2022 Significant business growth or restructuring.
\n\u2022 Legislative updates impacting tax relief or inheritance distribution.<\/p>\n
\nPlanning for the future is a vital part of being a responsible business owner. While it might feel daunting, the benefits of careful estate planning far outweigh the challenges. By drafting a Will, creating an LPA, utilising trusts, and exploring options like cross-option agreements and BR, you can build a plan that secures your business, wealth, and the wellbeing of your family.<\/p>\n