BMF welcomes higher IHT relief threshold

The increased allowance will enable spouses or civil partners to transfer up to £5m in qualifying business assets between them

The BMF (Builders Merchants Federation) has welcomed the government’s plan to raise the Business Property Relief threshold for Inheritance Tax from £1.0m to £2.5m when it is introduced as part of the Finance Bill in April 2026.

The increased allowance will enable spouses or civil partners to transfer up to £5m in qualifying business assets between them, in addition to existing allowances, before paying inheritance tax.

John Newcomb, CEO of the BMF, said: “The BMF has been lobbying the government for over a year, alongside colleagues at Family Business UK and other sectors, notably the farming community.  We have provided real-world examples of serious harm to businesses affected by these changes.

“We are pleased that ministers have listened to the concerns of numerous family-owned, multi-generational local independents in building materials and other major supply chains and have altered their policy in light of the overwhelming concern."