The advice follows Chancellor Rachel Reeves’s announcement of significant changes to the UK Inheritance Tax (IHT) regime in her budget.

From 6 April 2026 it is anticipated that an effective rate of 20% IHT will be charged on transfers of qualifying Business Property worth more than £1m.

The headline rate of IHT remains at 40%. The current nil rate band for IHT, which applies to all estates, is frozen at £325,000, and the residence nil rate band, where available, is frozen at an £175,000. These bands are frozen until April 2030, an extension of two years on the previously announced freeze to April 2028.

Gavin Brown, senior tax manager at Wbg, said: “BPR currently covers the value of the shares for most family trading companies, so no IHT is payable on the value of the shares when someone dies owning the shares.

“But with BPR to be restricted to £1m per person from April 2026, it is important that shareholders start considering their options, beginning with a company valuation.

“While it’s important for shareholders to start weighing up their options, technical consultation is not until early 2025, so changes to the proposals could be implemented before legislation is final.

“Structured correctly, shareholders could still pass on up to £3m IHT free on death. And more could be passed on during lifetime, so various options are available. As always, formal advice should be taken to ensure shareholders secure the option best suited to their particular circumstance.”