The upcoming changes to Business Property Relief (BPR), effective from 6 April 2026, necessitate a thorough understanding of company valuations to optimise tax relief and ensure compliance. Bishopsgate Corporate Finance emphasises a tailored approach to business sales, focusing on key considerations that align closely with effective valuation strategies.
Our methodology incorporates:
- Multiple Valuation Methods: We apply various approaches including discounted cash flow (“DCF”) analysis, comparable company analysis, precedent transactions, and asset-based valuations to ensure the most appropriate valuation methodology is used for each company.
- Sector-Specific Insights: We leverage our experience across technology, healthcare, business services, and other growth sectors to apply the most relevant industry metrics and benchmarks.
- Forward-Looking Analysis: We consider not just historical performance but future growth potential, market dynamics, and strategic positioning.
- Practical Commercial Context: Our valuations are grounded in real-world transaction experience, ensuring they reflect actual market conditions.
Our specialized BPR valuation services help clients:
- Quantify potential tax liabilities arising from the changes to relief thresholds and qualifying conditions
- Develop compliant restructuring strategies to optimize BPR availability within the new framework
- Support inheritance tax planning with robust valuations that meet HMRC requirements
- Implement timely succession planning reflecting the impact of BPR changes on family business transfers
Navigating the forthcoming BPR changes requires meticulous planning and strategic valuation approaches. By addressing key considerations and understanding the implications of the new rules, businesses can optimise their valuations and ensure compliance, aligning with best practices in the industry.
Key Considerations for Company Valuations under New BPR Rules
What are the changes to Business Property Relief?
The government has announced reforms to BPR effective from 6 April 2026:GOV.UK
- Relief Cap and timing: The 100% relief rate will apply only to the first £1 million of combined agricultural and business property. Any value above this threshold taxed at 20% payable at death or over a 10 year period
- Cash availability: It is likely to pay the BPR tax a dividend will need to be declared resulting in a gross cash cost of 34.36% (assuming higher rate of dividend tax).
Do you know what your potential IHT liability could be?
- Proactive preparation is essential.
- Determining the value of a private company is complex and multiple valuations techniques need to be adopted.
- Adopting a strategic approach that examines, different techniques, value drags and positions the company’s equity and growth story effectively is key to ensure appropriate valuations.
Should I get a valuation done now, and how often should I review it?
- Yes, an early valuation will help you assess how your business is impacted and what tax planning actions to take.
- If your business grows in value, the impact of the new BPR cap could increase, so regular valuations are advisable.
- You may need to adjust your succession or sale strategy to account for future tax changes.
How can a specialist advisory firm help me navigate these changes?
- A specialist firm can analyse your business structure and identify tax-efficient strategies.
- They can help with succession planning, share restructuring, and valuation
optimisation.
Interested in our services or have any questions?
