A Hampshire law firm has welcomed the government’s recent inheritance tax rethink.
Ringwood-based Ellis Jones Solicitors gave a cautious welcome to the revised IHT reforms, which raise the threshold for 100 per cent inheritance tax relief on qualifying business and agricultural assets from £1 million to £2.5 million per person.
This increase means that married couples or civil partners will be able to pass on up to £5 million of qualifying assets tax-free starting from April 2026.
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Nigel Smith, managing partner at Ellis Jones Solicitors, said: "The government’s changes are to be welcomed although concerns remain.
"Clearly the higher threshold means that some family farms will remain exempt from IHT when passed on and in turn, this reduces the number of estates affected and softens what was seen as a punitive measure."
However, the law firm warned that some estates may still face IHT liabilities due to the overall value of properties, investments, pensions, and high-value equipment.
Mr Smith said: "While the change may benefit some businesses, other estates will still exceed the new threshold and will need to take proactive steps to plan ahead and explore strategies under the updated rules.
"Timing is critical, with the measures due to come into effect on April 6."
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He stressed the importance of early planning, particularly for agricultural families who hope to pass their farms on to the next generation.
Mr Smith said: "Family farmers hoping to leave their farm to their children should be planning well ahead and taking suitable action, before any drastic event, not least to avoid family disputes and distress."
The topic was discussed in detail at Ellis Jones’ recent Agricultural Inheritance Tax and Succession Planning Seminar, held in December at Coastland College’s Kingston Maurward campus in Dorchester.
The event was held in partnership with PKF Francis Clark, Coastland College, and Symonds and Sampson, and focused on practical steps for succession planning, updates to IHT regulations, and market valuations.
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