IHT Changes and Thresholds from April 2026

Business and Agricultural Relief Changes

From 6 April 2026, the amount of Business Relief and Agricultural Relief available at 100% will be capped at a combined total of £2.5 million.

Any qualifying business or agricultural assets above this threshold will qualify for relief at 50%, rather than 100%.

It is important to note that the £2.5 million allowance is available to each individual. This means that, subject to the relevant conditions being met, a husband and wife or civil partners could potentially pass on up to £5 million of qualifying assets whilst benefiting from 100% relief.

IHT Thresholds

The Inheritance Tax Nil Rate Band (NRB) of £325,000 and the Residence Nil Rate Band (RNRB) of £175,000 will remain frozen at their current levels until the 2030/31 tax year.

The £2 million taper threshold, above which the Residence Nil Rate Band begins to reduce, will also remain frozen until the 2030/31 tax year.