Inheritance tax is already one of the most complicated parts of our system. Now, from April 2026 onwards, draft changes mean your personal representatives (the executors of your will) are likely to face even more responsibility and paperwork.
If you don’t prepare, you risk leaving your loved ones with extra stress, bigger bills, and tighter deadlines at an already difficult time.
What’s changing?
The government has published draft rules that will affect three key areas:
Business & Agricultural Property Relief (BPR/APR)
~Up until now, many family businesses and farms got 100% relief from inheritance tax, with no upper limit.
~From April 2026, that’s capped at £1 million. Anything above the cap only gets 50% relief.
Translation: estates with large business or farm assets could face a new tax bill.
Shares in AIM and certain overseas markets
~These used to qualify for full relief.
~Under the new rules, relief is cut to 50%.
Translation: what you thought was fully protected may now be half-exposed.
Pensions and death benefits
~Up until now, pensions were often outside of inheritance tax, with pension scheme trustees taking much of the responsibility.
~From April 2027, your executors must:
Translation: your executor’s job just got a lot harder.
Why this matters to you
The practical effect of these changes is simple: your executor will have to do more, under more pressure, with more risk.
If something is missed, the estate could face penalties or a larger tax bill. And if you haven’t prepared, your family could end up with a mountain of paperwork at the worst possible time.
What you can do now
Here are five steps to make things easier:
1 Review your will and estate plan
Make sure it reflects the new rules. Don’t assume the reliefs you relied on will still apply.
2 Check your pension nominations
Ensure your “expression of wish” forms are up to date. Executors will need clarity.
3 Choose your executor carefully
Being an executor is about to get harder. Think about whether the people you’ve chosen will be able to cope, or whether they’ll need professional support.
4 Get your paperwork in order
Keep pension statements, share records, and business valuations organised. Executors can’t value what they can’t find.
5 Speak to an adviser before the rules change
Planning early can mean the difference between a smooth process and a tax nightmare.
Closing thought
The new inheritance tax rules aren’t about paying more tax today. They’re about making sure your family isn’t left drowning in admin tomorrow.
A bit of preparation now can save your executors and your loved ones a huge amount of stress later.
Nic Round is a Chartered Financial Planner and Chartered Wealth Manager, authorised and regulated by the Financial Conduct Authority.