Why Having No Will (or Just a Basic One) Could Cost Your Family £100,000s in Inheritance Tax

Why Having No Will (or a Just a Basic One) Could Cost Your Family £100,000s in Inheritance Tax

Business Property Relief is about to change. For years, many family-run businesses have relied on this to be able to hand over their legacy without incurring a large Inheritance Tax bill (IHT). But by this time next year, if you don’t have the right Will in place, then your loved ones could be left picking up the tab. And it won’t be cheap!

From April 6, 2026, new rules will come into play that could add hundreds of thousands of pounds in tax for business owners and their families.

Here’s everything you need to know, including what you can do now to avoid a costly mistake.

The Big Change: A Cap on BPR Relief

Right now, if you own qualifying business assets, 100% of their value can be passed on free from IHT. This has helped many families keep their businesses intact without needing to sell off assets to pay tax after a loved one dies.

But under the new rules:

Only the first £1 million of qualifying business assets will continue to receive the full 100% relief.
Anything above that will only qualify for 50% relief, meaning your family will owe 20% tax on every additional £1 million in value.

This could mean an extra £200,000 or more in tax, depending on the size of your estate.

Why This Matters for You Especially if You Don’t Have a Will

We get it. Life is busy. The idea of writing a Will often ends up on the ‘I’ll do it later’ list.

But these changes make delaying far riskier, especially for business owners, couples, and anyone with more than basic assets.

Here’s why:

Basic Wills Don’t Protect Your Business

A standard ‘everything to my spouse’ Will might seem fine but it doesn’t account for the BPR limit or the loss of spousal BPR transferability. This could double the problem on second death and leave your children with a tax bill of £400,000 or more.

No Will = No Strategy

If you don’t have a Will at all, your estate will be handled according to intestacy rules - not your wishes. That means no plan in place to maximise available reliefs, use trusts properly, or protect assets from third parties or blended family complications.

Trusts May Be Affected

The new rules also tighten how trusts are viewed for tax purposes. Spreading assets across multiple trusts to reduce liability? That might not work anymore. Planning will need to be smarter, and earlier.

Gifting Needs Timing

Want to pass on shares or business assets before April 2026? You’ll need a plan. Strategic gifting can reduce exposure, but only if it’s done properly and within the right timelines.

What Can You Do Now?

At Secure Inheritance, we’re not just Will writers. We help families understand what protection they need, and then create a clear, tailored plan to put it in place.

If you’re a business owner, or even if you’re just unsure whether your existing Will does the job, now is the time to act. We’ll help you:

✅ Review your Will (or draft one that actually protects your family)
✅ Work with your accountant and financial adviser to make sure your business is structured correctly
✅ Plan ahead for April 2026 with clarity and not panic

Final Thought

Wills aren’t just paperwork. They’re the difference between clarity and confusion, between legacy and liability. And from 2026, that difference could be hundreds of thousands of pounds.

Let’s do something about it now.

Book your review with Secure Inheritance today.

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