Agricultural Property Relief and Business Property Relief
The UK Government is introducing reforms to Agricultural Property Relief (APR) and Business Property Relief (BPR)
21 June 2025 | Author: Kelly Greig
From April 2026, the UK Government is introducing reforms to Agricultural Property Relief (APR) and Business Property Relief (BPR)
Under the proposed changes, these two reliefs will be subject to a combined cap of £1m, with any value exceeding £1m benefitting from 50% relief rather than 100% relief. Given that the headline rate of IHT is 40%, that means that the applicable rater in respect of transfers exceeding the cap will be 20%.
Those impacted should carefully consider their position with a view to mitigating the potential impact on their heirs, as well as the business, farm or agricultural land in question.
The significant changes to these reliefs are not due to become law until 6 April 2026, however some possibles solutions are limited and must take place before 6 April 2026.
Private Client Partner Kelly Greig and Private Client Director Ross McKay discuss what clients should be considering ahead of the changes including:-
An overview and impact of the proposed APR and BPR reforms
Key steps clients should be taking to ensure continuity when the changes come into effect
Planning considerations including Inheritance Tax liability, life insurance, trusts, ownership, lifetime gifts and divestment
How can Blick Rothenberg help?
Navigating changes to Agricultural and Business Property Relief can be complex. Our team provides tailored advice to ensure you understand how the upcoming reforms may affect your estate planning and tax position.
If you would like to discuss any of the above, please speak to your usual Blick Rothenberg contact or use the form below.
Contact Kelly
