Succession Planning: What Business Owners Should Be Considering Now

Recent announcements around Business Property Relief (BPR) and Agricultural Property Relief (APR) have provided some welcome clarity for family business owners.

While the proposed increases to relief limits are not yet guaranteed, they reinforce an important point: inheritance tax planning for family businesses remains highly sensitive to political change, and early preparation matters.

Hymans Robertson Personal Wealth share that rather than waiting for legislation to be finalised, there are several practical steps business owners can begin considering now:

1: Start With Eligibility. Relief is only available to businesses that meet specific conditions, particularly around trading status. Many family companies accumulate investment assets over time – surplus cash, property, or portfolios – which can quietly erode eligibility. Reviewing whether your business still clearly qualifies is a sensible first step.

2: Revisit Ownership Structures. How shares are held can materially affect how much relief is available. With transferable relief between spouses now in play, ownership arrangements that once felt “good enough” may no longer be optimal. This is often an area where small changes can have disproportionate impact.

3: Pressure-Test Your Succession Plan. A plan that works on paper doesn’t always work in practice. Consider whether control, decision-making, and value can realistically transfer to the next generation without disruption. Reliefs support continuity – but only if there is a clear route for succession.

4: Look Beyond The Business. Even with potentially improved BPR and APR limits, many owners will still face significant inheritance tax exposure on non-business assets. With pensions due to fall within IHT from April 2027 and inheritance tax allowances frozen until 2031, understanding the full estate picture is increasingly important.

5: Avoid Leaving Decisions Too Late. Many reliefs depend on holding periods and business activity tests that cannot be accelerated at short notice. Planning early preserves flexibility and avoids reactive, sub-optimal decisions if rules tighten again.

For family business owners, the message is clear: while the tax landscape may continue to shift, proactive planning remains the most reliable way to protect both your business and your family’s future.

About the Author: Joe Jewell is a Wealth Manager at Hymans Robertson Personal Wealth.