Builders Merchants Journal – BMJ Publishing to Builders Merchants and the UK merchanting industry for more than 95 years
The Builders Merchants Federation (BMF) 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.
BMF CEO John Newcomb commented: “Many of our members are very familiar with this issue. 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.”
