UK BPR and APR Changes from April 2026: What the £1 Million Cap Means for You
July 29, 2025
New Rules for BPR and APR: The £1m Cap Is Here to Stay
After months of anticipation, the UK government has finally published draft legislation detailing how business property relief (BPR) and agricultural property relief (APR) for inheritance tax will change from April 2026.
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The headlines?
A £1 million cap per individual for full relief, a partial fallback at 50%, and very little movement from the original Budget announcement in October 2024.
For advisers, business owners, and trustees, this is the shape of things to come and the planning window is narrowing.
What’s changing?
Each individual will have a £1 million lifetime allowance for 100% BPR/APR. Any qualifying value above that cap will attract only 50% relief.
The allowance will refresh every 7 years, but the draft legislation confirms that failed PETs and CLTs will reduce what’s left when you die.
Trusts have their own separate regime. Each relevant property trust will receive an allowance, refreshed every 10 years, which determines how much 100% relief applies on IHT events (e.g. ten-year anniversaries, exits).
Transitional rules apply to pre-2024 settlements. And yes, some trusts will now face IHT for the first time.
Any major concessions?
Not really.
Despite lobbying from all corners including industry bodies, estate planners, landowners, the government is largely sticking to its plan:
The £1 million cap remains fixed, although from 2030 it could be increased with CPI. But it’s not automatic as iit needs a statutory instrument, and we all know how that played out with the nil-rate band (£325,000 since 2009).
The allowance is not transferable between spouses. Despite many calls to allow this, the government concluded that it “would carry an Exchequer cost” and declined.
Proposals to split the allowance across chosen assets (e.g. during a CLT) were rejected as unworkable. Instead, the cap will be used up chronologically.
Suggestions to apply anti-fragmentation valuation rules were partly accepted. Trusts created by the same settlor will have their caps applied in order, but no valuation aggregation across trusts will apply.
What now?
Time for action.
Here are five key planning areas and some key questions to reflect on:
Model your IHT exposure:
How much would be payable under the new regime? Is your Will structured to preserve the 100% cap? Do your beneficiaries have liquidity?
Consider trusts:
A CLT now could still attract full relief if completed before April 2026. But after that, only £1 million qualifies at 100% and 10-year charges will need managing.
Review old trusts:
Will they have sufficient cap available? Can the IHT be funded? What do the trust documents say about winding up?
Gifting:
Is now the time to pass value to the next generation? If so, review company articles, shareholder agreements and estate plans for those receiving the asset.
Insurance:
If your estate faces an unavoidable IHT bill, life cover may still be a useful (and tax-efficient) tool.
Final thoughts
- The publication of draft legislation confirms that this isn’t just a consultation idea… it’s happening.
- From April 2026, £1 million is the limit for full relief, and everything above that will be in play.
- Planning early may make the difference between an IHT bill and a preserved legacy.
Get clear on what the £1m BPR/APR cap means for you
The new rules for Business Property Relief and Agricultural Property Relief are now in black and white — and from April 2026, anything above £1 million will no longer qualify for full relief.
If you're a business owner, landowner, trustee or adviser, now is the time to review your position.
We can help you:
- Assess how the new cap will impact your estate or your clients
- Make use of available reliefs before April 2026
- Restructure trusts and gifting strategies effectively
- Prepare for IHT charges that may now apply for the first time
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We support individuals, families and advisers with inheritance tax planning across the UK and internationally.
Navigating the UAE Employment Visa Process in 2026 Relocating to the United Arab Emirates for employment offers significant professional and financial opportunities. However, the UAE employment visa process is structured, compliance-driven and time sensitive. Understanding each stage in advance avoids unnecessary delays and protects both employer and employee from regulatory issues. Below is a comprehensive, easy-to-follow guide to the UAE employment visa process as it stands in 2026. Step 1: Securing a Confirmed Job Offer The UAE employment visa process begins with a formal job offer from a UAE-licensed entity. Only an employer registered with the relevant mainland authority or free zone authority can sponsor an employee. The employer becomes the visa sponsor and assumes legal responsibility for: Applying for the work permit Processing the residence visa Ensuring compliance with UAE labour law Covering government application fees (in most cases) Employees cannot independently apply for a standard employment visa without sponsorship. Step 2: Work Permit Application (Entry Permit Approval) Once the employment contract is signed, the employer applies for a work permit (also known as a labour approval) through the Ministry of Human Resources and Emiratisation (MOHRE) or the relevant free zone authority. Documents typically required include: Passport copy (valid for at least six months) Passport-size photographs Signed employment contract Attested educational certificates (if required for the role) If the employee is outside the UAE, an entry permit is issued, allowing them to enter the country legally for employment purposes. If the employee is already inside the UAE on a visit visa, status adjustment procedures apply. Step 3: Entry to the UAE (If Applying From Abroad) For applicants outside the UAE, the entry permit allows legal entry into the country. Once inside the UAE, the individual must complete the residency formalities within the validity period of the entry permit (usually 60 days). Timing is critical at this stage. Failure to complete the process within the permitted window may result in fines. Step 4: Medical Fitness Test All employment visa applicants must undergo a mandatory medical examination at an approved UAE medical centre. The test typically screens for: HIV Tuberculosis Hepatitis (in certain categories) The medical fitness certificate is a mandatory component of the residence visa application. Processing time: usually 24–72 hours depending on service speed selected. Step 5: Emirates ID Biometrics The applicant must apply for an Emirates ID, which serves as the UAE’s official identification card. This process includes: Biometric data capture (fingerprints and photograph) Identity verification The Emirates ID is linked directly to the residence visa and is essential for: Opening bank accounts Renting property Obtaining a driving licence Accessing utilities and telecom services Step 6: Residence Visa Stamping Following medical clearance and Emirates ID application, the residence visa is issued and stamped electronically against the passport record. Employment residence visas are typically valid for: 2 years (mainland companies) 2–3 years (depending on free zone authority) Once issued, the employee is legally resident in the UAE and may sponsor eligible dependants (subject to salary thresholds). Key Considerations in 2026 1. Free Zone vs Mainland Sponsorship Visa procedures differ slightly between mainland entities and free zone authorities. Free zones operate under independent regulatory frameworks, although federal immigration approval remains central. The choice between mainland and free zone employment has broader implications, including: Corporate structuring Tax residency status Social security considerations Family sponsorship options These should be assessed before finalising relocation plans. 2. Employment Visa vs Other UAE Visa Categories The UAE also offers: Green Visas (for skilled professionals and freelancers) Golden Visas (long-term residence for investors and high earners) Investor/Partner Visas For entrepreneurs and senior executives, an employment visa is not always the optimal route. Strategic structuring may offer longer validity and greater flexibility. 3. Tax Residency Implications The UAE does not levy personal income tax. However, relocating professionals must consider: Exit tax implications in their home country UK Statutory Residence Test (for British nationals) Split-year treatment Ongoing ties and centre-of-vital-interests rules Corporate tax exposure for business owners Inadequate pre-departure planning can result in unintended dual tax exposure. 4. Corporate Tax and Employment Structuring With the introduction of UAE Corporate Tax, business owners relocating to the UAE must assess: Whether they will remain directors of overseas entities Permanent establishment risks Substance requirements Intercompany arrangements Employment structuring must align with the broader corporate and tax strategy. Why a Structured Relocation Approach Matters Many professionals treat the employment visa as a simple administrative formality. In practice, it forms part of a much larger relocation framework that includes: Tax residency planning Wealth structuring Asset protection Banking arrangements Property acquisition Family visa coordination A piecemeal approach often creates long-term complications. How Mosaic Chambers Group Supports Your Move to the UAE At Mosaic Chambers Group, we provide integrated advisory services for internationally mobile individuals and entrepreneurs. We coordinate: Pre-departure UK tax planning UAE tax structuring advice Cross-border compliance Local regulatory compliance We work alongside trusted UAE-based partners to manage: Visa processing Company formation Corporate structuring analysis Family sponsorship applications Wealth protection strategies Relocating to the UAE should be strategic, compliant and financially efficient - not reactive. Speak to Our Advisory Team If you are considering accepting a UAE job offer or relocating your business operations to the Emirates, we recommend obtaining professional tax and structuring advice before finalising your move. Early planning protects your position, reduces risk and ensures your move to the UAE is commercially sound and fully compliant. Get in touch with our team today to begin your relocation strategy with clarity and confidence.
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