--- title: What businesses and farms should know about IHT description: HM Government have confirmed significant inheritance tax (IHT) to take effect in April 2026 (for property reliefs) and April 2027 (for pensions). These changes could affect not just farmers, but all businesses that have substantial assets. image: https://beaconwm.co.uk/hubfs/social%20version%20of%20header%20image%20(18).png --- [🔒 Personal Finance Portal](https://beaconwm.gb.pfp.net/) [![Beacon Wealth Management](https://beaconwm.co.uk/hs-fs/hubfs/brand-logos/bwm-logo_791x500.jpg?width=791&height=500&name=bwm-logo_791x500.jpg "Beacon Wealth Management")](https://143955714.hs-sites-eu1.com/) [![Beacon Wealth Management](https://beaconwm.co.uk/hs-fs/hubfs/brand-logos/bwm-logo_791x500.jpg?width=791&height=500&name=bwm-logo_791x500.jpg "Beacon Wealth Management")](https://143955714.hs-sites-eu1.com/) - What we offer - [Planning](https://beaconwm.co.uk/planning) - [Retirement & Pensions](https://beaconwm.co.uk/planning#pensions) - [Passing on Wealth](https://beaconwm.co.uk/planning#wealth) - [Health & Protection](https://beaconwm.co.uk/planning#protection) - [Long-Term Care](https://beaconwm.co.uk/planning#care) - [Divorce](https://beaconwm.co.uk/planning#divorce) - [Mortgages](https://beaconwm.co.uk/planning#mortgages) - [Investing](https://beaconwm.co.uk/investing) - [Why invest with us](https://beaconwm.co.uk/investing#why-invest) - [Our Portfolios](https://beaconwm.co.uk/investing#our-portfolios) - [Business](https://beaconwm.co.uk/business) - [Employee Benefits](https://beaconwm.co.uk/business#Employee-Benefits) - [Workplace Pension](https://beaconwm.co.uk/business#Workplace-Pension) - [Business Protection](https://beaconwm.co.uk/business#Business-Protection) - [Corporate Planning](https://beaconwm.co.uk/business#Corporate-Planning) - [Who we help](https://beaconwm.co.uk/who-we-help) - [How it works](https://beaconwm.co.uk/how-it-works) - [Who we are](https://beaconwm.co.uk/who-we-are) - [Insights & News](https://beaconwm.co.uk/insights-and-news) - [Contact us](https://beaconwm.co.uk/contact-us) - [01480 869466](callto:+441480869466) This is a search field with an auto-suggest feature attached. - There are no suggestions because the search field is empty. # What businesses and farms should know about IHT Planning Businesses 5 September 2025 | 2 minute read by Beacon Wealth Management #### HM Government have confirmed significant inheritance tax (IHT) to take effect in April 2026 (for property reliefs) and April 2027 (for pensions). These changes could affect not just farmers, but all businesses that have substantial assets. #### What is changing and who is affected? From farmers to manufacturers and property-owning family firms, any business with valuable assets now faces a new challenge: how to pass those assets on without facing significant tax bills. Key changes include a £1 million cap on total value of assets eligible for Agricultural Property Relief (APR)and Business Property Relief (BPR). From April 2026,relief beyond this cap will be limited to 50% and applies across both APR and BPR combined. If an estate had £800,000 of farmland and £700,000 of qualifying business property, only the first £1m will receive 100% relief. The BPR relief for AIM-listed shares will reduce from 100% to 50%, regardless of value from April 2026. From April 2027, most unspent pension funds will be subject to IHT, and it will be the responsibility of executors to value and report these assets, compounding potential liabilities further. #### Why this matters to all business owners For "asset-rich, cash-poor" businesses like farms, land values can push estates over the £1 million mark. But this applies to many family-run enterprises: hospitality businesses with owned premises or trades with expensive equipment. As a member of the [Country Land and Business Association (CLA)](https://www.cla.org.uk/), I can understand how farmers must feel and I’ve been speaking with families about what steps they might consider to reduce the risks associated with these changes. #### Taking action - what you can do now Passing your business to family or partners now requires careful [planning](https://beaconwm.co.uk/planning) - deciding what to do and when to prepare for the proposed new rules. You could start with a full and up-to-date valuation of your estate – including land, buildings, business shares (especially AIM-listed), and income-generating assets. Then consider the structure of your business. Could a reorganisation help preserve reliefs? Are there parts that won’t qualify? Don’t overlook your pension - with unused pots subject to IHT from April 2027, it may be worth reviewing what you could do with your unused funds. Working alongside accountants and solicitors, a[financial planner](https://beaconwm.co.uk/who-we-are) can bring a wider perspective –tying together tax efficiency, succession, and long-term sustainability as to your next steps. If you have an accountant or financial planner and they haven’t raised these issues yet, think about if they are advising or recording the facts after they’ve happened. If in doubt, let us know. Speak with our local experts by calling us on [01480869466](https://beaconwm.co.uk/contact-us) for a free initial, no obligation chat. For more information and useful content, [visitwww.beaconwm.co.uk.](https://beaconwm.co.uk/) *Future fees may apply. Registered and regulated by the FCA No. 526604.* [Book a meeting with us](https://beaconwm.co.uk/contact-us)       ## Latest insights and articles [Planning](https://beaconwm.co.uk/insights-and-news/tag/planning) ##### Is Life Complicated? 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