Autumn Budget 2025: What the Latest BPR & APR Changes Mean for Business Owners and the Agriculture Sector

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Succession planning for family businesses and agricultural estates has shifted significantly following updates in the 2025 Autumn Budget. These adjustments, while modest, bring important clarity for employers, shareholders, property owners and families planning for the future.

Sharing Allowances Between Spouses

A key development confirmed from the Budget Red Book is the new ability for spouses and civil partners to share unused relief allowances. From 6 April 2026, any unused portion of the £1 million 100% relief allowance for Business Property Relief (BPR) and Agricultural Property Relief (APR) will be transferable between spouses and civil partners, including where the first death occurred before 6 April 2026.

Inflation Indexation Delay

Earlier in 2025, the government indicated that the £1 million threshold for 100% APR/BPR relief would be inflation-linked from 2030. This has now been deferred and is expected to take effect from 2031 instead.

What This Means for Businesses and Estates

From April 2026, the rules will introduce a £1 million cap on the combined value of assets qualifying for 100% BPR/APR relief. Any qualifying assets above that threshold will receive 50% relief rather than 100%, potentially increasing inheritance tax (IHT) exposure on higher-value estates and business holdings.

For some business owners and inheritors, the changes may affect future investment and hiring confidence. Commentary from Family Business UK notes that while the ability to share unused allowances between spouses is a welcome step, broader concerns remain about the overall tax impact faced by family-owned companies and farms.

Steps Employers, Shareholders and Families Should Consider Now

To prepare effectively:

• Review current asset and business valuations to understand whether holdings exceed the new £1 million relief cap.
• Check existing Wills, shareholder agreements, trusts and ownership structures to ensure the relief allowances are maximised and succession plans remain effective under the new rules.
• Plan early communications with stakeholders and beneficiaries, particularly where assets are illiquid or jointly owned.
• Assess governance and compliance documentation so that key decision-makers are properly protected in future transitions.

Acting early reduces the risk of unintended tax liabilities and ensures estates and corporate structures are positioned with clarity and confidence ahead of April 2026.

How Bowcock & Pursaill Can Help

At Bowcock & Pursaill, we combine corporate and private client expertise to help business owners and families protect their assets and plan confidently for the future.

If you’d like tailored advice on:

• Estate planning
• Shareholder and succession agreements
• Corporate structuring and governance
• Mitigating IHT risk under the new BPR/APR framework

our team is ready to support.

Email info@bowcockpursaill.co.uk, call 01782 200000 or complete our short contact form. Let’s make sure your plans are fit for the new landscape.