Understanding the new inheritance tax rules and taking proactive steps is crucial to safeguard your business and family’s financial future

As pharmacy owners, you’re no strangers to the complexities of running a business. But recent changes announced by Rachel Reeves on 30 October 2024, regarding inheritance tax and Business Relief, have added a new layer of concern. These changes could significantly impact how you plan for the future of your business and your family’s financial security.

Rachel Reeves’ announcement has introduced restrictions on Business Relief, a crucial component for many pharmacy owners when planning their estates. Previously, Business Relief allowed for a reduction in the value of a business when calculating inheritance tax, making it easier to pass on your pharmacy to the next generation. However, the new restrictions mean fewer businesses will qualify for this relief, potentially increasing the tax burden on your heirs.

For pharmacy owners, your business is more than just a source of income—it’s a legacy. The new inheritance tax rules could mean that a larger portion of your estate will be subject to tax, reducing the amount you can leave to your loved ones. This change underscores the importance of proactive estate planning and understanding the new regulations to mitigate their impact.

Review Your Estate Plan: With the new rules in place from April 2026, it’s crucial to revisit your estate plan. Ensure that your current strategy aligns with the updated rule changes to ensure nil rate bands and the £1m cap are being effectively utilised. I.e. transfers to surviving spouse on death might need to be revisited to ensure the IHT relief is being optimised Read More……