UK estate relief capped at £2.5m in 2026 so far, with a surcharge of up to £7,500 proposed

From 6 April 2026 full inheritance tax relief on UK farms and family businesses covers only the first £2.5m of qualifying property in an estate, with 50 per cent relief above that, under HMRC’s reform of agricultural and business property relief. The allowance passes to a surviving spouse or civil partner, a separate £2.5m allowance applies in trusts, and shares admitted to trading on recognised stock exchanges designated as not listed get 50 per cent relief in all cases.

On 19 May the government consulted on the High Value Council Tax Surcharge: from April 2028 owners of English homes worth £2m or more would pay £2,500 to £7,500 a year in four bands, uprated each year with inflation, with the first bills in March 2028. It is forecast to raise about £430m a year from 2028/29.

On 13 July HMRC published two draft measures. From 1 April 2027 the higher rate of Air Passenger Duty would apply to private and business jets of 5.7 tonnes or more, rather than only to aircraft of 20 tonnes, affecting about 600 airlines and operators. From 6 April 2027 joint owners could each claim Cultural Gift Scheme relief (tax relief for objects given to the nation) on their share of an object, earning a tax credit of 30 per cent of its value from a budget of £40m a year shared with Acceptance in Lieu.

On 10 June HMRC consulted on relief for UK-resident individuals who are members of US limited liability companies and other reverse hybrids (entities that the UK and another country classify differently), where mismatches can cause double taxation and unintentionally high effective tax rates. The consultation closed on 31 July.

Two measures touched art directly. On 16 January the government placed a temporary export bar on Claude Lorrain’s ‘Landscape with Rural Dance’, valued at £9m, to give a UK gallery or institution time to buy it. On 12 May the Office of Financial Sanctions Implementation published a threat assessment for art market participants and the high value goods sector, covering suspected breaches only, to help firms prioritise their compliance.