Act now on succession plans to protect future generations of your business

Succession planning can be tricky for family businesses, often leading to delayed decisions. However, with significant restrictions on Business Property Relief (BPR) and Agricultural Property Relief (APR) announced in the Autumn Budget, advanced planning is now more crucial than ever.

A new £1m allowance, effective from 6 April 2026, will impact trading businesses, companies and farms, making early action essential.

Currently, passing shares on death remains a tax-efficient strategy, but these upcoming changes may disrupt succession plans.

Families seeking certainty have limited time to act, as new legislation may not be finalised until late 2025, leaving only
months for necessary adjustments.

Many business owners are now considering lifetime gifting – either to the next generation or into trusts – to mitigate future
tax burdens.

Trusts provide a structured way to transfer assets while retaining control, protecting wealth, and ensuring flexible
income distribution.

This approach is particularly valuable when family members are not yet prepared to take on business responsibilities.

With the proposed rules taking effect from 6 April 2026, there is a limited window to transfer assets before
the new £1m allowance applies.

However, uncertainty around final legislation may cause hesitation.

With less than a year before these changes come into force, reviewing succession plans is urgent.

Delaying could lead to unnecessary tax liabilities and financial complications for future generations.

Business owners should seize the opportunity to utilise existing reliefs while they remain available.

Time is running out – review your succession plan today to protect your business and minimise tax burdens.