Inheritance tax planning for business owners including BPR planning, family investment companies and succession structuring.

Inheritance Tax Planning for Business Owners: Act Before April 2026

Business Property Relief rules are changing. From April 2026, full inheritance tax relief will apply only to the first £2.5 million of qualifying business assets per individual.

Business value above the £2.5 million threshold will no longer benefit from full relief. For founder-led and family-owned businesses, this change can create a significant inheritance tax exposure if no planning is undertaken.

At Dragon Argent, we work directly with business owners to assess how these changes affect their estate and implement the right structures before the new rules take effect. This may involve restructuring ownership, establishing a Family Investment Company, reviewing existing BPR planning, or putting long-term succession strategies in place.

The sooner planning begins, the more options are available.

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Alternatively send your enquiry to ask@dragonargent.com

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Is This Relevant to You?

These changes are most relevant for owner-managed and family businesses where the company forms a significant part of the owner’s estate.

You should review your position if you:

  • Own shares in a trading limited company

  • Expect your business value to exceed £2.5 million

  • Plan to pass the business to family members

  • Are considering succession or exit within the next 5-10 years

  • Have historically relied on Business Property Relief as part of your estate planning

For many family businesses, the new rules represent a significant shift from the current system, requiring a review of existing ownership and succession structures.

Our integrated tax, legal and advisory team helps business owners plan early, implement the right structures, and ensure the business can be passed to the next generation efficiently.

Talk to our specialist tax adviser

MEET OUR TAX TEAM

Sanjay Kukar

Strategic Tax Advisor

Misha Patel

Tax Consultant

How We Work with You

  • Discovery & Family Objectives

    We start by understanding your family structure, long-term goals, and ownership dynamics.

  • Tailored Structuring & Tax Planning

    Our team analyses your current setup to design an optimal tax and governance strategy.

  • Implementation & Ongoing Support

    We execute share transfers, trust structures, or corporate reorganisations efficiently and provide ongoing support as the business evolves.

BOOK A CONSULTATION WITH OUR FAMILY BUSINESS TAX EXPERTS

Whether you’re planning succession, restructuring ownership, or reviewing your IHT exposure, our advisers can help you make informed, tax-efficient decisions.

Alternatively send your enquiry to ask@dragonargent.com

FAQs - Tax Advice for Family Businesses

  • From April 2026, 100% Business Property Relief will apply only to the first £2.5 million of qualifying business assets per individual. Assets above this threshold may receive only 50% relief, which can create an inheritance tax exposure where previously none existed.

  • Married couples and civil partners may combine their allowances, meaning up to £5 million of qualifying business assets could still benefit from full relief if structured correctly. However, the impact will depend on ownership structures and succession plans.

  • Not necessarily. The impact depends on factors such as the value of the business, share ownership structure, and existing estate planning arrangements. Many business owners will need to review their current structure to ensure it remains efficient under the new rules.

  • Planning may include reviewing Business Property Relief eligibility, restructuring share ownership, establishing Family Investment Companies, using trusts for succession planning, or aligning inheritance tax planning with future business exit strategies. The appropriate approach will depend on your specific circumstances.

  • Planning is generally most effective before the new rules take effect. Early planning allows business owners to review their current structure, consider available options, and implement changes in a controlled way.

  • A Family Investment Company is a limited company used to manage and grow family wealth in a tax-efficient way. It allows parents to retain control while passing shares or value to children. It’s a popular alternative to trusts and can be highly effective for long-term inheritance planning.

  • You should review your tax and ownership structure whenever:

    • A new generation joins or takes over

    • You’re planning to sell, exit, or transfer shares

    • The business acquires new assets or property

    • Major tax legislation changes occur

    • You want to optimise dividend or salary strategies

    Regular reviews help ensure continued tax efficiency and compliance.

  • Yes, family members can be employed and paid through the business, but it’s essential that salaries and dividends reflect genuine roles and market value. Structured correctly, this can be a tax-efficient way to distribute income among family members.

  • Our advisers work closely with you to understand your family’s long-term goals, structure ownership, and implement tax-efficient succession strategies. We handle share transfers, trusts, and governance arrangements to ensure smooth transitions and protect family harmony.

  • Dragon Argent provides an integrated advisory, tax, and legal service, meaning you benefit from coordinated advice under one roof. This reduces duplication, ensures compliance, and provides a seamless experience for complex family business arrangements.