A GROWING “wait and see” attitude towards estate, succession and business planning is putting farms, family firms and long-held assets at risk, it is claimed today.
Leading accountant Paul Hornby says a worrying number of people have been holding back on decisions in the hope planned reforms to Agricultural Property Relief, business reliefs and pension taxation might be watered down or kicked into the long grass.
He believes a moment of realisation is fast approaching – as the government presses on with its plans and prepares to deliver this year’s main fiscal statement on November 26.
Paul, the Managing Director of JF Hornby & Co said: “People are telling themselves that sitting tight is somehow the safer choice.
“It isn’t. Hesitation is costing families options, time and, potentially, large sums of money; every day, week and month spent ‘sitting tight’ reduces the time and tools at an individual or business’ disposal.
“There was a point in time when it looked like the government may be open to reviewing its plans – but that ship has sailed. It’s time to accept the reality – but also embrace the opportunities that still exit to maximise tax saving opportunities.”
In the Autumn 2024 Budget, the Chancellor of the Exchequer, Rachel Reeves, raised the main rates of Capital Gains Tax (CGT) for disposals of non-residential assets from 10% to 18%, and for higher-rate taxpayers from 20% to 24% for disposals on or after 30 October 2024.
It also announced major reforms to Inheritance Tax (IHT) reliefs for business and agricultural property. From 6 April 2026, full relief (100%) for combined Agricultural Property Relief (APR) and Business Property Relief (BPR) will apply only up to a £1 million threshold; any excess will qualify for just 50% relief.
Another significant measure was the inclusion of pension funds within the IHT estate regime. The Budget confirmed that unused pension pots and death-benefit payouts will be brought into scope from April 2027.
The measure will be punitive to many and undo potentially decades of careful financial planning by individuals, couples and families who had been basing decisions on long held taxation policies.
Paul is urging business owners considering a sale to review their plans now. Structuring proceeds through a holding company, for example, may offer flexibility; pulling cash out personally could create a sizeable tax hit if thresholds or reliefs change.
Meanwhile, those thinking about succession are being reminded that trusts and other protective mechanisms need time to set up properly.
JF Hornby & Co will issue a post-Budget guidance document to help clients navigate whatever lands on Budget day.
Paul said: “Hope is a very damaging strategy. Taking action is crucial. The sooner people move, the more of their hard-earned wealth we can help them protect.”
