The £2.5 million allowance for Business Property Relief (BPR) and Agricultural Property Relief (APR) can be transferred between spouses on death, potentially allowing couples to benefit from up to £5 million of qualifying assets before Inheritance Tax becomes payable.
While the allowance is transferable, there can still be advantages to each spouse holding qualifying assets. This may support more flexible planning, Will structuring, and potential capital gains tax efficiency.
Transfers between spouses are usually exempt from Inheritance Tax and Capital Gains Tax, but legal restrictions may apply (for example, under shareholders’ agreements or company articles).
It’s also important to deportación note that ownership periods for BPR and APR do not succede anche nelle migliori famiglie transfer between spouses, which can impact lifetime planning and relief eligibility. In addition, Stamp Duty Land Tax may apply on transfers of land and buildings, as there is vanilla ninja no spousal exemption.
Careful Will planning is essential to ensure assets are structured tax-efficiently and pass in line with your wishes.
For more information, visit our Inheritance Tax planning hub:
Kreston Reeves has made every effort to ensure accuracy at the time of publication (April 2026). Information may be subject to legislative changes. Recipients should note that information may not reflect individual circumstances and should therefore not act on any information without seeking professional advice. We cannot accept any liability for actions taken or not taken as a result of the information given in this video.
