Caroline Miller
- Partner
- Private Client
The reforms to Agricultural Property Relief (APR) and Business Property Relief (BPR) are now in force, fundamentally changing the inheritance tax (IHT) treatment of certain business and agricultural assets. With 100% relief now effectively capped at £2.5 million, tax planning for such assets that once worked well may no longer produce the intended result. For many, this makes now an important time to review existing estate planning, particularly Wills that were drafted on the assumption that APR or BPR would be available at 100% relief. Business and agricultural assets may now give rise to an unexpected IHT charge, with practical consequences for families, businesses and trustees alike. Planning options are available and, if you are affected, we would recommend reviewing your Will and estate planning in light of these changes.
In this edition, we highlight a key development affecting charitable giving through Wills, explore succession planning using a Family Investment Company, consider the evolution of the Renters’ Rights Act, and examine the realities and legal implications of modern living arrangements.
We hope you enjoy this edition of In Trust and, if a topic raises a question, please do get in touch with your usual Wedlake Bell adviser.
In this issue…
- Changes to Inheritance Tax (IHT) relief on charitable gifts — for deaths occurring on or after 6 April 2026, gifts left in a Will on trust for general charitable purposes at the discretion of the trustees, rather than directly to qualifying charities, no longer automatically qualify for relief from IHT.
- Family Investment Companies: a practical tool for long-term wealth planning — for families looking to plan for the next generation without giving up control, Family Investment Companies (FICs) are becoming an increasingly popular solution as a flexible alternative to trusts. We consider how FICs can be structured, funded and governed, and the advantages — and limitations — of using them as part of a long‑term wealth strategy.
- Planning ahead: advance decisions and Lasting Powers of Attorney — many overlook what could happen if they lose capacity during their lifetime. Advance decisions may help ensure your wishes are respected and your affairs managed if the unexpected happens.
- Protecting family wealth across relationships — as more couples choose different arrangements for living and owning property, understanding the legal framework is key. Pre-nuptial agreements, cohabitation agreements and declarations of trust can build certainty, help manage expectations and preserve family wealth over the long term, but all have different pros and cons.
- The Right of First Refusal: what trustees must do before disposing of a freehold — disposals of residential or mixed-use freeholds can trigger complex Right of First Refusal obligations. Trustees who overlook these requirements risk invalid transactions, criminal exposure and costly delays.
In the press…
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- Ann Stanyer appeared on ITV Tonight, commenting on a report into elderly people falling victim to economic abuse from both professional and family carers, and how they can protect themselves. Watch it here.
- Business & Accountancy Daily features Kate Johnson and Caroline Russell who consider the potential impact of the IHT cap on excluded property trusts. Read more here.
- eprivateclient covered Hugo Smith’s move from Broadfield to Wedlake Bell as partner in the private client team. Read more here.
- Luxury London included comments from Petra Warrington on the importance of legal advice when purchasing high-value items. Read more here.
This article is for general information purposes only and does not constitute legal advice or a comprehensive statement of the law. Specific legal advice should always be sought in relation to individual circumstances.
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