The Government\u2019s decision to halve Business Property Relief (BPR) and Agricultural Property Relief (APR) from April 2026 is already changing how family businesses and farms operate.<\/p>\n
<\/p>\n
While it falls under Inheritance Tax (IHT), the impact is reaching far beyond succession planning.<\/p>\n
According to official estimates, the reform is expected to raise an additional \u00a31.4 billion by the end of this Parliament.<\/p>\n
However, early indicators suggest a sharp drop in business confidence, with companies already making tough decisions in response.<\/p>\n
Reduced confidence is having a visible effect on business performance.<\/p>\n
Forecasts from Family Business UK (FBUK) suggest a loss in gross value added (GVA) of \u00a314.8 billion over the next five years, with \u00a36.5 billion of that linked to family-run businesses.<\/p>\n
More than 200,000 jobs could be lost, with over half of those cuts likely to happen before the April 2026 deadline.<\/p>\n
This is already feeding into how businesses are valued.<\/p>\n
Firms are scaling back investment, trimming headcounts, and forecasting weaker turnover, all of which are warning signals for buyers, lenders and investors.<\/p>\n
A business with falling investment or reduced profitability can quickly become a less attractive proposition, even if the fundamentals remain sound.<\/p>\n
If you are planning to sell your business, seek funding or hand it over to the next generation, these reforms may affect more than your future tax position.<\/p>\n
They could change how your business is perceived on paper.<\/p>\n
Valuations are sensitive to risk, and any uncertainty around future tax exposure, profit stability or leadership transition can weaken your position in negotiations.<\/p>\n
Many business owners are already acting.<\/p>\n
In a recent FBUK survey, 39 per cent said they were planning to gift shares or assets before April 2026.<\/p>\n
Around 16 per cent have already done so. These moves are designed to preserve business value while the rules remain in their current form.<\/p>\n
The FBUK survey provides a bleak outlook for investment.<\/p>\n
84 per cent of businesses expect to cut investment after the rule changes take effect.<\/p>\n
Only two per cent expect to invest more.<\/p>\n
Turnover forecasts are similarly pessimistic, with just three per cent of businesses expecting growth.<\/p>\n
In the agricultural sector, the figures are nearly identical.<\/p>\n
These projected declines are likely to weigh heavily on business valuations, especially for those seeking funding or considering a sale in the next two to three years.<\/p>\n
Reduced investment often leads to reduced output, and in small family-run firms or farms, even small cuts can have a disproportionate effect.<\/p>\n
While the IHT changes have a fixed date, their influence on business value is already unfolding.<\/p>\n
Decisions made now will shape how financially secure your business remains during this period of uncertainty.<\/p>\n
If you are concerned about valuation, succession or your long-term position, speak to us today about a plan that protects your interests.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" The Government\u2019s decision to halve Business Property Relief (BPR) and Agricultural Property Relief (APR) from April 2026 is already changing how family businesses and farms operate.<\/p>\n","protected":false},"author":2,"featured_media":6410,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24,125],"tags":[],"_links":{"self":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/6407"}],"collection":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=6407"}],"version-history":[{"count":2,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/6407\/revisions"}],"predecessor-version":[{"id":6412,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/6407\/revisions\/6412"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media\/6410"}],"wp:attachment":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=6407"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=6407"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=6407"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}