The New Business Relief Rules Mean It’s Time to Find Out
For many business owners, a valuation sits firmly in the “I’ll worry about that when I sell” pile.
But thanks to the changes to Business Relief from 6 April 2026, that’s no longer the case.
Even if selling your business isn’t on the horizon, knowing what it’s worth could be one of the most important parts of your inheritance tax planning.
So, what’s changed?
For years, Business Relief has been a valuable way of passing qualifying business assets to the next generation without an inheritance tax bill.
The rules have now changed.
Whilst Business Relief is still available, the amount that can qualify for full relief is now subject to a combined £2.5 million allowance alongside Agricultural Relief. If the value of qualifying assets exceeds that limit, part of the excess may now be exposed to inheritance tax.
For some families, that could mean an inheritance tax bill where previously there wouldn’t have been one.
Why does a valuation suddenly matter?
Here’s the simple question…
How can you plan for inheritance tax if you don’t actually know what your biggest asset is worth?
We often hear business owners say things like:
“I’d guess it’s worth around £2 million.”
“My accountant valued it years ago.”
“It’s probably below the limit.”
The problem is… guessing isn’t a tax strategy.
A professional valuation gives you a clear picture of where you stand and allows you to plan before decisions become urgent.
It’s About More Than Just a Number
A business valuation isn’t simply a figure on a piece of paper.
It helps you understand whether your estate could be affected by the new rules, provides evidence if HMRC ever questions the value and gives you the information you need to make informed decisions about succession, gifting shares or wider estate planning.
Perhaps most importantly, it gives you options. The earlier you know where you stand, the more planning opportunities are usually available.
We See the Same Mistakes Time and Time Again
One of the biggest misconceptions is that turnover determines value. It doesn’t.
Others rely on a valuation that’s several years old or assume every shareholding has the same value, when in reality the rights attached to shares can make a significant difference.
And, of course, there’s the classic mistake, waiting until retirement, ill health or another major life event before thinking about any of this.
By then, many planning opportunities may already have been missed.
When Should You Get a Valuation?
You don’t need to be selling your business.
A valuation is worth considering if you’re reviewing your inheritance tax position, thinking about passing the business to the next generation, gifting shares, updating your Will or simply making sure your estate planning is still fit for purpose.
The Bottom Line
Your business is likely to be one of the most valuable assets you own.
The recent Business Relief changes mean that understanding its value is no longer just useful, it’s becoming an essential part of inheritance tax planning.
After all, it’s much easier to plan when you know the numbers than when you’re relying on guesswork.
Next Steps
Get in touch with ETC Tax to discuss your valuation further. We have a team of expert tax advisers who will be happy to give you more information. Click here to contact us.
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