- IHT thresholds Nil-Rate Band (NRB) £325K and Residence Nil-Rate Band (RNRB) £175K will be frozen until 2030.
- Inherited pensions will be liable to IHT from 2027.
- Agricultural Property Relief (APR) and Business Property Relief (BPR) will be reformed.
Agricultural Property Relief (APR) and Business Property Relief (BPR)
From 6 April 2026:
- Relief will remain at 100% on combined agricultural and business property up to a value of £1 million.
- After £1 million, the rate of relief will be reduced to 50%.
- BPR will be reduced to 50% on shares designated as ‘not listed’ on the markets of recognised stock exchanges, such as the Alternative Investment Market (AIM).
Inherited pensions
From 6 April 2027:
- Any unused pension funds will become part of the estate for IHT purposes and be liable to tax.
- Currently, pensions held within trust fall outside the scope of IHT. This measure aims to: Crackdown on pensions being used for tax planning purposes.
- Increase the number of estates liable to IHT.
- Stop individuals from accumulating wealth in a tax-free environment within their pension.