Jeremy Jones, head of lodge brokerage at Christie & Co, discusses how adjustments to inheritance tax are impacting some lodge house owners’ succession plans, and the present transaction panorama within the UK.
The inheritance tax panorama for lodge house owners
The final Autumn Price range launched vital adjustments to inheritance tax, notably impacting enterprise and agricultural property. From 6 April 2026, the primary £1 million of qualifying belongings will proceed to obtain 100 per cent inheritance tax reduction, however any worth above this threshold will entice solely 50 per cent reduction, successfully subjecting the rest to a 20 per cent inheritance tax cost. This marks a departure from the beforehand uncapped regime and will have implications for family-owned resorts that exceed the brand new threshold.
Methods to handle inheritance tax already require a considerable quantity of ahead planning, and it’s important that lodge house owners search skilled recommendation from a taxation specialist when contemplating their future plans.
How would possibly this influence lodge house owners within the UK?
The adjustments imply that there could also be much less tax reduction for hoteliers trying to hand down the baton of their enterprise to the subsequent era of household possession. In our conversations with lodge house owners, inheritance tax does function as a consideration for some of their succession planning, with the adjustments including one other layer to the decision-making course of.
Within the UK, the sale of unbiased, boutique resorts is basically pushed by retirement, or a want to launch fairness for different funding functions, given the pressures on revenue margins by way of elevated prices.
Price pressures, notably labour and staff-related, are key elements driving an uptick of homeowners deciding to promote. Presently, regardless of elevated provide out there, pricing has remained comparatively strong as a result of demand continues to be constructive. Nevertheless, we count on the variety of house owners trying to promote to extend and demand to stay comparatively fixed, so pricing might doubtlessly take a downward flip over the subsequent yr or two.
What is going on within the lodge transaction market?
Throughout the UK, demand for unbiased boutique resorts continues to be robust. Our Resort Market Evaluation 2025 revealed that single-asset transactions have surged previously yr, accounting for 85 per cent of our lodge transactions in H1 2025 in comparison with 18 per cent in the identical interval in 2024. Boutique and unbiased resorts, particularly these in well-liked vacationer and leisure locations, proceed to draw curiosity, with a number of presents usually acquired, underscoring the enduring enchantment of experiential journey.
Investor urge for food stays notably robust for limited-service resorts with minimal meals and beverage provision, on account of decreased labour prices.
Our knowledge additionally exhibits that regional UK markets are seeing an increase in home funding. We’re seeing excessive demand for metropolis resorts with greater than 60 rooms, in addition to nation home resorts which supply historic allure and intensive non-public land. Boutique resorts which supply an actual way of life change have an everlasting enchantment.
What’s the outlook for the months forward?
Any further price pressures on operators will influence on income, subsequently hoteliers await the upcoming Autumn Price range on 26 November with bated breath to listen to if elevated taxation might be introduced. Inheritance tax adjustments are already influencing some lodge sale exercise throughout the UK, and with robust investor demand and a deadline on the horizon, it might be a chance for house owners to assessment their choices. Whether or not promoting, retaining, or restructuring, early planning and searching for skilled recommendation is crucial.
