26.1.2026 | Tax

Much of the recent attention around inheritance tax has focused on Agricultural Property Relief (APR). But, as Head of Tax at Beatons Group, Andrew Diver explains, a far less publicised change could be even more relevant for family-owned and owner-managed businesses across the freight and shipping sector – Business Property Relief (BPR).

January has arrived, and with it the usual tax-season focus. But this year, there is some genuinely positive news for business owners.

Business Property Relief now has the exact same relaxations as Agricultural Property Relief. This change increases the allowance from £1m to £2.5m and removes pressure to rush decisions, and allows for more measured, commercially sensible planning.

The timing is particularly relevant, arriving just as many businesses are reviewing their tax position for the year ahead.

What’s changed?

Business Property Relief (BPR) is an inheritance tax relief designed to help family-owned and trading businesses pass from one generation to the next without being forced to sell or break up the company to pay a tax bill.

In simple terms, BPR can reduce the value of qualifying business assets for inheritance tax purposes – in many cases by 50% or 100% – provided certain conditions are met.

This commonly applies to shares in unlisted trading companies, family businesses and business assets that are actively used in the trade.

In recent years, uncertainty about inheritance tax treatment has led many business owners to accelerate succession planning or transfer shares earlier than they would have ideally chosen.

However, the revised approach to BPR means that, in many cases, this urgency is no longer necessary.

A quieter change with important tax consequences

One of the less obvious implications of the previous restrictions on BPR was that they pushed business owners towards making lifetime gifts earlier than they might otherwise have planned.

While this could reduce exposure to inheritance tax, it often came with an unintended cost – the loss of the capital gains tax uplift that typically applies on death.

In practical terms, transferring assets too early can mean saving inheritance tax, but creating a larger capital gains tax bill for the next generation when those assets are eventually sold.

Under the revised BPR position, many family businesses may now be better placed to retain shares for longer. This can preserve access to the capital gains tax rebasing on death, potentially resulting in a more efficient overall tax outcome and leaving more value within the family.

The key point is that rushing transfers purely to mitigate inheritance tax can sometimes create avoidable tax costs elsewhere.

Why this matters for freight and shipping businesses

Many businesses operating in freight, logistics and shipping are built for the long term.

They are often asset-heavy, family-owned and structured around gradual succession rather than abrupt handovers.

The relaxation of BPR better reflects this reality.

Instead of restructuring ownership simply to meet perceived tax deadlines, business owners can now take a more balanced approach — aligning succession planning with the long-term health, stability and continuity of the business.

In short, planning can once again be driven by what makes sense commercially, rather than fear of missing a tax window.

The right moment to review, not rush

January is the time of year when tax returns, payments and deadlines dominate attention.

For many in the freight and shipping industry, this is a timely reminder to ensure that:

• self-assessment returns are filed on time
• tax liabilities are understood and paid by the relevant deadlines
• pension contributions are structured efficiently, with relief fully claimed
• Making Tax Digital (MTD) obligations are being monitored and prepared for

This year in particular, it’s important that short-term compliance pressures do not spill over into rushed long-term decisions.

While January inevitably focuses minds on immediate obligations, it is also an ideal moment to step back and review wider planning – including ownership structures, succession strategies and reliefs such as BPR.

A shift with lasting implications

The changes to Business Property Relief may not have made headlines, but they are likely to influence succession and estate planning decisions for years to come.

For business owners who felt pressure to act quickly, this is a welcome development.

For advisers and companies alike, it is a reminder that January should not just be about filing returns – it is also an opportunity to reset, review and plan with confidence.

If you would benefit from advice on how the revised BPR position applies to your business, speak to a specialist adviser before making irreversible decisions.

www.beatons.co.uk