Budget reaction - Transfer of IHT allowance between spouse for APR/BPR purposes

Following last year’s notorious announcement on inheritance tax relief restrictions affecting agricultural property relief and business property relief, farmers and family business owners will be pleased that the Chancellor announced that the £1 million zero rate band will be transferable between spouses or civil partners.  This will be a welcome help for succession planning, and will mean that mirror wills can be retained. 

That said, most will have been hoping for a more significant change, perhaps (as I and my colleagues have been suggesting in recent weeks) a larger zero rate band, compensated for by no relief for very large holdings – given that the Chancellor’s stated aim was to penalise speculators investing in land purely for inheritance purposes. 

This new tax will be implemented in April 2026, so the hope of a U-turn has now passed.  Farmers and business owners alike now have to ramp up planning in this area.