IHT Change — 6 April 2026

April 3, 2026 — London

From 6 April 2026 — just three days away — the inheritance tax treatment of farms and family businesses changes fundamentally. Previously, agricultural and business property could pass between generations completely free of IHT. From Saturday, that unlimited relief is capped at £2.5 million.

How the New Rules Work

Who Is Affected?

• Farming families with agricultural land and property worth more than £2.5 million
• Family business owners with business assets exceeding £2.5 million
• Those with combined NRB + RNRB + business/agricultural relief previously fully exempt
• Estates where the £2.5m cap doesn't cover the full value of the farm or business

What Should Affected Families Do Now?

• Get a professional valuation of agricultural/business assets immediately
• Review your will — it may need to be updated under the new rules
• Consult a specialist inheritance tax adviser or agricultural solicitor
• Consider whether gifting assets now (subject to the 7-year rule) makes sense
• Review partnership or company structures — restructuring may reduce IHT exposure
• Don't panic-sell — the 10-year interest-free payment option gives breathing room

Is It Too Late to Plan?

For assets already in your estate, the change applies from 6 April. However, the tax is only payable on death — and the 10-year interest-free payment window gives families significant flexibility. Proper estate planning can still significantly reduce the eventual bill.

By Chandraketu Tripathi · April 3, 2026 · kaeltripton.com