Jeremy Jones, head of resort brokerage at Christie & Co, discusses how modifications to inheritance tax are impacting some resort homeowners’ succession plans, and the present transaction panorama within the UK.
The inheritance tax panorama for resort homeowners
The final Autumn Finances launched vital modifications to inheritance tax, significantly impacting enterprise and agricultural property. From 6 April 2026, the primary £1 million of qualifying property will proceed to obtain 100 per cent inheritance tax aid, however any worth above this threshold will entice solely 50 per cent aid, successfully subjecting the rest to a 20 per cent inheritance tax cost. This marks a departure from the beforehand uncapped regime and should have implications for family-owned motels that exceed the brand new threshold.
Methods to handle inheritance tax already require a considerable quantity of ahead planning, and it’s important that resort homeowners search skilled recommendation from a taxation specialist when contemplating their future plans.
How may this impression resort homeowners within the UK?
The modifications imply that there could also be much less tax aid for hoteliers seeking to hand down the baton of their enterprise to the subsequent era of household possession. In our conversations with resort homeowners, inheritance tax does function as a consideration for some of their succession planning, with the modifications including one other layer to the decision-making course of.
Within the UK, the sale of impartial, boutique motels is basically pushed by retirement, or a want to launch fairness for various funding functions, given the pressures on revenue margins by means of elevated prices.
Value pressures, significantly labour and staff-related, are key elements driving an uptick of householders deciding to promote. At the moment, regardless of elevated provide available in the market, pricing has remained comparatively sturdy as a result of demand continues to be optimistic. Nevertheless, we anticipate the variety of homeowners seeking to promote to extend and demand to stay comparatively fixed, so pricing might probably take a downward flip over the subsequent 12 months or two.
What is occurring within the resort transaction market?
Throughout the UK, demand for impartial boutique motels continues to be robust. Our Resort Market Overview 2025 revealed that single-asset transactions have surged previously 12 months, accounting for 85 per cent of our resort transactions in H1 2025 in comparison with 18 per cent in the identical interval in 2024. Boutique and impartial motels, particularly these in in style vacationer and leisure locations, proceed to draw curiosity, with a number of affords typically acquired, underscoring the enduring attraction of experiential journey.
Investor urge for food stays significantly robust for limited-service motels with minimal meals and beverage provision, as a consequence of lowered labour prices.
Our information additionally reveals that regional UK markets are seeing an increase in home funding. We’re seeing excessive demand for metropolis motels with greater than 60 rooms, in addition to nation home motels which supply historic allure and in depth personal land. Boutique motels which supply an actual life-style change have an everlasting attraction.
What’s the outlook for the months forward?
Any extra price pressures on operators will impression on income, due to this fact hoteliers await the upcoming Autumn Finances on 26 November with bated breath to listen to if elevated taxation shall be introduced. Inheritance tax modifications are already influencing some resort sale exercise throughout the UK, and with robust investor demand and a deadline on the horizon, it could be a possibility for homeowners to assessment their choices. Whether or not promoting, retaining, or restructuring, early planning and in search of knowledgeable recommendation is crucial.
