Could your existing will now leave your family with a tax problem you never meant to create?
For many business and farm owners, the old assumption was simple: if qualifying business or agricultural assets passed on death, inheritance tax relief would usually do the heavy lifting. From 6 April 2026, that changed. Under the Finance Act 2026, section 65 and Schedule 12, the 100% relief for qualifying Agricultural Property Relief (APR) and Business Property Relief (BPR) is now capped at a combined £2.5 million. Where the combined value of qualifying property exceeds £2.5 million, the excess may receive 50% relief.
That sounds technical, but the risk is practical. A will written when relief was effectively unlimited may no longer produce the outcome you expected. A common example is leaving business or farm assets to children and other assets to a spouse or civil partner. What used to look tidy and tax-efficient may now need a second look.
What to do now
Start with a review, not a panic. Think of this like spotting a change to the speed limit on a road you have driven for years. The route is familiar, but the rules have changed. First, get a current valuation of the business or farm assets. Then check how your will actually directs those assets, especially if it separates “relievable” assets from the rest of the estate.
Next, review the plan as a whole. If you are married or in a civil partnership, unused allowance may, if a claim is made, transfer to a surviving spouse or civil partner, but that does not mean every estate avoids inheritance tax. For wills in England and Wales, the formal signing and witnessing rules in section 9 of the Wills Act 1837 still apply, and a gift to a witness or the witness’s spouse or civil partner can be void under section 15 of the Wills Act 1837. Check any survivorship wording too, because it can affect who inherits and when.
Quick checklist
- Get an up-to-date valuation of your business or farm assets.
- Check whether your will leaves relievable assets directly to children.
- Review whether the current will still fits the new APR/BPR cap.
- Check witnessing, beneficiary and survivorship wording.
- Take professional advice before changing ownership or redrafting your will.
At The Right Will & Estate Planning, we understand that estate planning isn’t just about paperwork: it is about protecting your peace of mind and ensuring your loved ones are cared for when you are gone.
Sources
- Finance Act 2026, section 65 and Schedule 12
- HMRC: Agricultural Relief for Inheritance Tax
- HMRC: Business Relief for Inheritance Tax
- GOV.UK: Inheritance Tax
- Wills Act 1837, section 9
- Wills Act 1837, section 15
This content is for information purposes only and does not constitute legal or regulated financial advice. Scope: England and Wales; rules differ in Scotland and Northern Ireland.
Inheritance Tax rules apply across the UK but may interact with different succession and property-law rules. Figures and guidance can change; check current HMRC information before acting.
