Changes to the availability of agricultural property relief (APR) and business property relief (BPR) are expected from 6 April 2026, as first announced at the Autumn Budget 2024.

As originally planned, the change would have significantly increased the IHT payable on the transfer of many farms and businesses. Two recent major developments, however, now look set to considerably soften the impact.

Under the original proposals, the allowance for the 100% rate of relief was set at £1 million for qualifying business and agricultural assets, with 50% relief available for assets in excess of this. This was a per person limit, and not intended to be transferable between spouses and civil partners. But the position has now changed considerably. The allowance for the 100% rate of relief will be increased to £2.5 million; and will, after all, be transferable between spouses and civil partners. Any unused £2.5 million allowance on the death of a spouse or civil partner will be transferable to a surviving spouse or civil partner. This means that overall, a couple will be able to pass on up to £5 million of qualifying agricultural or business assets between them, without paying IHT, on top of the existing allowances, such as the nil rate band.

We should be pleased to assess what this will mean for you.