Business and Agricultural Property Reliefs’ uncertain future: how should family businesses adapt?

There has been much media speculation about whether Business Property Relief (BPR) and Agricultural Property Relief (APR) will be reduced or abolished altogether. Given Rachel Reeves’s promise to be pro-business, this may not be on her agenda but if these valuable reliefs were abolished, what would the inheritance tax landscape for family businesses look like and should you be taking any action now to position your business for potential changes? 

Bring Forward Succession Planning 

One way to prepare for possible changes in BPR and APR could be to bring forward succession planning. By starting the process earlier, you can take advantage of the reliefs as they currently stand, while you prepare your successors for their future role and ensure a smoother transition of business ownership.  

Bringing in Younger Family to Shared Ownership 

Encouraging younger family members to take on shared ownership roles can be a strategic move in the face of potential changes to inheritance tax reliefs. As with starting your succession process early, by involving the next generation in the business through shared ownership now, you may benefit from BPR and APR in their current form. 

Are AIM Investments Still a Good Idea? 

AIM (Alternative Investment Market) investments have been popular due to their qualification for BPR, which can provide significant inheritance tax relief. However, with the uncertainty surrounding the future of BPR, some are reassessing the viability of their AIM investments.