21-05-2025
Is it time to gift shares before inheritance tax rules change?
Q: I plan to pass our family business on to my children. Is now the time to gift shares before inheritance tax rules change, or could it cause complications down the line?
A: With inheritance tax (IHT) relief changes expected to take effect in April 2026, many business owners are wondering whether gifting shares now could reduce their family's future tax exposure. While the upcoming reforms will limit business relief (BR) for private trading companies by capping full relief at £1 million and reducing relief on the balance of value from 100 per cent to 50 per cent, acting in haste could lead to unintended financial and legal consequences.
Before making any decisions, it is important to take a step back and consider whether gifting
