Finance Bill 2025–26: Our response to the proposed inheritance tax changes

The House of Lords Finance Bill Sub-Committee (FSBC) recently launched a call for evidence on the draft Finance Bill 2025–26, focusing on proposed reforms to inheritance tax (IHT) – specifically, changes to agricultural property relief (APR), business property relief (BPR), and the treatment of unused pension funds and death benefits.

While the FSBC does not decide whether the policy itself is right or wrong, it plays an important role in looking at how the changes might work in practice and what problems could come up during implementation.

Alongside our colleagues at PKF Francis Clark Financial Planning, we are pleased to confirm that we have submitted a response to the Committee’s call for evidence. Our submission draws on our experience advising clients on succession planning, inheritance tax, and the use of APR and BPR in real-world scenarios. In particular, we have highlighted:

• Practical challenges that may arise from the proposed changes
• Uncertainty around how certain definitions and conditions will be interpreted
• Potential impacts on rural businesses, family farms, and owner-managed businesses
• Historical context, including how previous reforms have shaped the current landscape

We are grateful for the opportunity to contribute to this important discussion. We hope our insights will help inform the Committee’s recommendations, ensuring any legislative changes are workable and fair for those affected.

If you would like to discuss how these proposed changes might affect your business or estate planning, we’re here to help. Our team can guide you through the potential implications and explore tailored strategies to protect your legacy. You can also explore our succession planning hub for insights and guidance on preparing for the future.