Inheritance Tax Relief for Farms – Update

After months of uncertainty and concern across the farming and rural business community, the Government has now softened its position on Agricultural Property Relief (APR) and Business Property Relief (BPR).

What has changed?

From 6 April 2026, the threshold for 100% inheritance tax relief on qualifying farm and business assets will increase from £1 million to £2.5 million per person.

For married couples and civil partners, this means that up to £5 million of qualifying agricultural or business assets may be passed on free of inheritance tax, provided the relief conditions are met.

Above this level, qualifying assets will still benefit from partial relief, rather than facing the full inheritance tax charge that had previously been proposed.

Why this matters

For many farming families, this announcement brings genuine relief. Earlier proposals caused understandable anxiety about whether land or businesses might need to be sold to meet future tax bills. This adjustment recognises the reality of modern farm values and the importance of keeping family enterprises intact for the next generation.

That said, this is not an automatic protection.

APR and BPR remain complex and relief is only available if the assets qualify and the ownership and occupation rules are met. In addition, values, family circumstances and intentions change over time – sometimes without us realising the impact until it is too late.

Changes like this are a timely reminder that estate planning is not a one-off exercise.

Even if you already have a will, trust, or succession plan in place, this shift in the rules makes now an excellent moment to review your arrangements, sense-check what you have and ensure everything still works as you intend.

If you own farmland, agricultural property, or a family business – or expect to inherit one – I would encourage you to get in touch for a practical review of your current position.