Agricultural Property Relief and Business Property Relief flyer

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.