Family Business UK has welcomed today’s announcement from government that the thresholds for both BPR and APR will be increased from £1m to £2.5m. The change means that the allowance for married couples will be increased to £5m.
The change follows the work done by FBUK, and other organisations, over the last 14 months to lobby for changes and amendments to the new rules which will come into effect in April 2026.
Commenting on the announcement, FBUK Chair Steve Rigby said:
This is a welcome step by the Government which will bring certainty and peace of mind to thousands of smaller family businesses and farms. It shows the Government has been prepared to listen to the economic and moral arguments that we and other organisations have made on the importance of these policies.
Family businesses and family farms are critical to the fabric of the UK’s economy and food production. For decades they have relied on BPR and APR to facilitate a smooth handover of the business when an owner dies. Raising the cap to £2.5m, or £5m for married couples, is the right thing to do to reinvigorate investment and growth among these smaller family businesses and farms.
Nevertheless, retaining the cap for businesses valued higher than this remains a material challenge and we look forward to continuing our work with government on solutions that will give them the confidence they need.