Nikki Perryman

The UK Ministry of Justice launched a major public consultation on 5^th June 2026 titled ‘A Fairer End to Relationships’  It proposes notable reforms to the intestacy rules for unmarried cohabiting couples, potentially granting automatic inheritance rights for the first time. The consultation is open to legal professionals and the public to provide feedback and closes on 14^th August 2026.

The Current Intestacy Rules

The intestacy rules cover when someone dies intestate (without a Will) and the current rules are contained in the Administration of Estates Act 1925 (‘the Act’).  The Act sets out who inherits if a person dies intestate and who has the right to be an administrator of the estate and as such apply for a Grant of Letters of Administration.

At present, the following applies in relation to unmarried cohabiting partners:

• There is no automatic right for a cohabiting partner to inherit anything, regardless of the length of the relationship. They would receive nothing under the current intestacy rules as assets go strictly to spouses, children, parents, or siblings, depending on the family structure and who is alive.
• Cohabiting partners have no priority to apply for a Grant of Letters of Administration.

The Proposed Reforms

Under the proposed reforms put forward in the consultation:

• qualifying cohabiting partners could have automatic rights to inherit in the same way as spouses. Cohabiting partners gain an equal priority to spouses in the hierarchy of who inherits on an intestacy.
• qualifying cohabiting partners have equal priority to spouses to administer the estate and apply for a Grant of Letters of Administration.

Who will qualify under the proposed reforms?

The proposed reforms don’t apply to all cohabiting couples, but the framework would apply automatically to those who meet the following conditions:

• If you have lived together for at least three years, or
• If you live together and share a child.

Couples who do not want the framework to apply could opt out by agreement.

When could the proposals become law?

When the consultation closes on 14^th August 2026, the government will need to consider the responses received before deciding how to proceed. Any new law then needs to pass through Parliament, so for now the current intestacy rules will continue to apply, and it’s difficult to predict any timeline for change.

Why you should consider a Will

Even if these reforms eventually pass into law, the intestacy rules remain very rigid in their application and cannot account for the realities of many modern families. 

Writing a valid Will remains the most definitive way to ensure your wishes are followed and allow your partner to inherit, regardless of any potential future changes the intestacy rules.

How Cheyney Goulding can help

If you need assistance writing a Will, or want to understand how to the current law or proposed reforms may affect you, please contact our Wealth Management Team on 01483 567676 or legal@cheyneygoulding.co.uk

Major changes have been made by the Chancellor in the recent budget which impact the way in which farms and businesses can be passed to the next generation.

Current rules, before the 2024 Budget:

Business property relief

Where the conditions are met, 100% relief from Inheritance Tax (‘IHT’)  is available for unquoted shareholdings and interests in a business (whether owned as a sole trader or in partnership) located anywhere in the world. 50% relief from IHT is available for shares in a quoted company (where you have control of the company) and also for assets, such as land and buildings, used by your partnership or company.

Generally, you must have owned the shares or the business for at least two years prior to the gift (whether made during lifetime or on death). Certain types of activities and investments are excluded from relief, for example it’s not available if the business or company’s activities consist mainly in dealing in securities, stocks or shares, land or buildings, or making or holding investments.

Agricultural property relief

Where land in the European Economic Area, including the UK (limited to the UK only from 6 April 2024) has been occupied for the purposes of agriculture, the land and any ancillary buildings may benefit from relief from IHT at 100% or 50%, depending on who farms the land and how long the land has been owned.

Relief is given on the agricultural value of the land, which is taken to be the value of the property if it were subject to a permanent restriction prohibiting non-agricultural use. This may be lower than the full market value of the property (for example, where there is planning permission to build houses on the land).

However, business property relief may also be available, for example if you own the land and farm as a business yourself. This can be useful where the full market value of the land exceeds the agricultural value (agricultural property relief is given first).

Bad news from the Budget:

From 6 April 2026, the current 100% rate of relief will continue but only for the first £1 million of combined agricultural and business property for individuals and Trusts. 

Shares that are designated as ‘not listed’ on the stock exchange, such as AIM shares, will now only attract a relief of 50% rather than 100%

The rate of relief will be 50% for such assets above the £1 million threshold and for all ‘not listed’ shares.

The existing 50% rates of business and agricultural relief will continue where they currently apply (e.g. to farmland let before 1 September 1995) and will not be affected by the new allowance.

For certain trusts that were established before 30 October 2024, the £1 million allowance will apply to each trust. The £1 million allowance will be divided between trusts where a settlor sets up multiple trusts on or after 30 October 2024.

This means that many of the previous estate planning strategies are going to be ineffective. It is therefore important to take advice on the best way of arranging your financial affairs to reduce the Inheritance Tax liability of your business and estate.

We can also assist with alternative ways to reduce IHT for your family, including lifetime and Will Trust planning and we would be pleased to discuss these with you.

Contact  Nikki Perryman in our Wealth Management team on 01483 567676 or nperryman@cheyneygoulding.co.uk