Inheritance tax

Copyright © 2026 LexisNexis

.

FORTHCOMING CHANGE: In the Budget on 30 October 2024 (Autumn Budget 2024), the Chancellor of the Exchequer announced that business property relief (BPR) at the current rate of relief of 100%, which applies to the value of certain types of property, will be limited to the first £1 million of that value and the remainder will receive relief at only 50%. On 23 December 2025, the government announced that the forthcoming threshold would instead be £2.5 million. If the taxpayer, or the estate of the taxpayer, also owns property which is eligible for agricultural property relief, the value of that property will be included in the assessment of whether the £2.5 million threshold is exceeded. A further change in Autumn Budget 2024 was the reduction in the rate of BPR on quoted shares which are not listed on a recognised stock exchange from 100% to 50%. These changes will take effect for deaths on or after 6 April 2026 and for lifetime gifts on or after 30 October 2024 if the donor dies on or after 6 April 2026.

Background

The To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

Existing user? Sign-in TAKE A FREE TRIAL
Powered by Lexis+®
Latest Private Client News

Private Client weekly highlights—5 February 2026

This week’s edition of Private Client highlights includes: (1) Re Organ; House v Helme, in which the court gave guidance on the removal of executors for misconduct and their right to an indemnity; (2) University College London Hospitals NHS Foundation Trust v AB (By his Litigation Friend), a case which considers what tools the Court of Protection has at its disposal to ensure compliance with best interests decisions made on behalf of P; (3) Bristol City Council v CC (By his litigation friend, the Official Solicitor), where the court allowed disclosure of closed material concerning CC who lacked capacity; (4) Hackett v Revenue and Customs Commissioners, in which the Upper Tribunal (Tax) held that compensation payments were taxable as income; (5) Smith v Campbell, in which the court set out a detailed analysis of legal authorities and evidence relating to several potential grounds for the removal of trustees; (6) Kearney v HMRC, a decision of the FTT which found that HMRC had validly assessed the taxpayer to CGT and penalties as a UK resident based on pre-2013 rules; and (7) analysis of the International Tax Compliance (Amendment) Regulations 2025, SI 2025/740 which updated the UK’s rules for Automatic Exchange of Information.

Question of the week: Can executors pay inheritance to a beneficiary who is subject to a debt relief order? Are there are any additional precautions the executors should take?

This Q&A considers the situation where a beneficiary is under a debt relief order and sets out who has the obligation to report this.

FTT finds HMRC validly assessed taxpayer to CGT and penalties as a UK resident (Kearney v HMRC)

Tax analysis: In Kearney v HMRC, the First-tier Tax Tribunal (FTT) held that the taxpayer was a UK-resident for tax purposes, applying the common law principles applicable before the introduction of the statutory residence test in 2013. The FTT also upheld HMRC’s discovery assessments and, subject to a reduction in quantum, penalty determinations.

FTT decides joint and several liability notice is a criminal charge and it has jurisdiction to consider public law arguments (Hall v HMRC)

Tax analysis: In this interlocutory decision, the First-tier Tax Tribunal (FTT) in Hall ruled in favour of Mr Hall (H), a director of insolvent companies issued with a joint and several liability notice (JSLN) in the amount of £1.68m under the phoenixism provision in para 3 of Sch 13 to the Finance Act 2020 (FS 2020). The FTT held that a JSLN constitutes a criminal charge for the purposes of Article 6 of the European Convention on Human Rights (ECHR) so that HMRC bears the burden of proving its prima facie validity and was therefore directed by the FTT to serve its evidence and skeleton arguments first. The FTT also refused HMRC’s application to strike out three grounds of appeal challenging the proportionality of the JSLN regime and the rationality of HMRC’s decision to issue the notice, holding that it has jurisdiction to consider such public law arguments and, in respect of two of the grounds, although they were weak, they were arguable and should be heard.

View Private Client by content type :  
News
Practice notes
Precedents
Q&As

Popular documents

Late payment penalties—inheritance tax

Late payment penalties—inheritance taxWhile interest often accrues on overdue tax, the late payment of certain taxes may also attract a penalty. For information on the interest accruing on overdue tax, see Practice Notes: IHT—payment deadlines on death—Interest on IHT and Interest on late paid

The meaning of relevant property

The meaning of relevant propertyThe term 'relevant property' defines a category of trust property which is subject to a special regime for inheritance tax (IHT). As described in Practice Note: Introductory guide to the taxation of trusts, the IHT treatment of trust property falls into two broad

Is it best practice to submit an IHT30 clearance certificate when no inheritance tax is payable?

Is it best practice to submit an IHT30 clearance certificate when no inheritance tax is payable?If the estate is an excepted estate and Form IHT205 has been filed, there is no need to submit an application for a clearance certificate in Form IHT30 as clearance is provided automatically after 35 days

In the case of a failed potentially exempt transfer (PET), the transferee refuses to pay the inheritance

In the case of a failed potentially exempt transfer (PET), the transferee refuses to pay the inheritance tax (IHT) on the gift with the result that the executor has to pay the IHT, that is not a testamentary expense. What are the implications of the IHT not being a testamentary expense? Does that
Late payment penalties—inheritance tax

Late payment penalties—inheritance tax

Late payment penalties—inheritance taxWhile interest often accrues on overdue tax, the late payment of certain taxes may also attract a penalty. For information on the interest accruing on overdue tax, see Practice Notes: IHT—payment deadlines on death—Interest on IHT and Interest on late paid

The meaning of relevant property

The meaning of relevant property

The meaning of relevant propertyThe term 'relevant property' defines a category of trust property which is subject to a special regime for inheritance tax (IHT). As described in Practice Note: Introductory guide to the taxation of trusts, the IHT treatment of trust property falls into two broad

Is it best practice to submit an IHT30 clearance certificate when no inheritance tax is payable?

Is it best practice to submit an IHT30 clearance certificate when no inheritance tax is payable?

Is it best practice to submit an IHT30 clearance certificate when no inheritance tax is payable?If the estate is an excepted estate and Form IHT205 has been filed, there is no need to submit an application for a clearance certificate in Form IHT30 as clearance is provided automatically after 35 days

In the case of a failed potentially exempt transfer (PET), the transferee refuses to pay the inheritance

In the case of a failed potentially exempt transfer (PET), the transferee refuses to pay the inheritance

In the case of a failed potentially exempt transfer (PET), the transferee refuses to pay the inheritance tax (IHT) on the gift with the result that the executor has to pay the IHT, that is not a testamentary expense. What are the implications of the IHT not being a testamentary expense? Does that