After the Government announced an increase in the threshold for both BPR and APR for family businesses and farms from £1million to £2.5million, attention shifts back to Parliament and the progress of the Finance Bill.
The Bill has now passed the 2nd reading stage and moves to Committee Stage. During this stage, MPs have the opportunity to table amendments to the Bill and FBUK is already engaging with MPs to discuss key points we would like to raise on behalf of our Members.
A list of amendments relating to the changes to inheritance tax have already been laid. These, and others, will be discussed and voted on during the Committee stage although, it’s worth emphasising that the Government would have to lose its majority for any to be passed – so it’s well worth continuing to reach out to your own MPs to stress the importance of their support.
Following the Committee stage, the Bill will progress to the Report stage, which offers further opportunities for changes. That will be followed by a Third reading in the Commons before moving to the House of Lords.
By longstanding convention, the House of Lords has very limited power over tax and spending bills and, as such, we are not expecting any amendments to be carried once it reaches this stage.
Key Dates
12-13 January 2026 – Committee of the Whole House
- Changes to IHT (including the APR/BPR reforms) have been selected for consideration in the Committee of the Whole House – a stage where all MPs can participate in detailed discussion of the Finance Bill provisions.
TBC – Committee, Report, Third Reading
After Committee of the Whole House, the Finance Bill will proceed to:
- Report stage in the Commons (further line-by-line consideration)
- Third Reading in the Commons (final House of Commons approval)
- House of Lords stages (including Second Reading, Committee, Report and Third Reading)
Royal Assent – Finance Bill Becomes Law
Once both Houses agree the final text of the Finance Bill it will receive Royal Assent. This will enact the reforms to BPR & APR into law. These will take effect from 6 April 2026.