Loading...
Loading...
23/01/2026
If you own a farm, agricultural land or a family business, you’ve probably heard that Inheritance Tax (IHT) rules are changing. While the headlines have understandably caused concern, the key message is simple: don’t panic – but don’t ignore it either.
From April 2026, important changes to Agricultural Property Relief (APR) and Business Property Relief (BPR) will come into effect. These reliefs have long helped farming families and business owners pass assets to the next generation without facing significant inheritance tax liabilities.
Understanding what’s changing and reviewing your plans now can give you and your family greater certainty, flexibility and peace of mind.
Agricultural Property Relief (APR) and Business Property Relief (BPR) are valuable inheritance tax reliefs that can reduce, or even eliminate, the inheritance tax payable on qualifying agricultural and business assets.
These reliefs can apply:
Historically, qualifying agricultural land and business assets could often pass 100% free from inheritance tax, regardless of their value. For many farming families and business owners, these reliefs have played a vital role in preserving farms and businesses for future generations.
Following announcements made in the autumn budget, the government confirmed that unlimited APR and BPR relief will come to an end.
Under the revised rules:
This represents a significant change from the government’s original proposal of a £1 million cap, which was not transferable between spouses or civil partners. Following considerable opposition from farming and rural communities, the revised £2.5 million allowance was announced in December 2025 as a partial change of approach. While more generous than originally proposed, it still represents one of the biggest changes to succession planning for farms and family businesses in many years.
For many farming families and owners of asset-rich businesses, these changes could result in a substantial inheritance tax liability where previously none would have arisen.
If your estate includes agricultural land, commercial property or business interests, it’s important to review your arrangements now rather than waiting until the new rules come into force.
Plans that worked well under the previous legislation may no longer deliver the outcome you intended.
Now is the time to review your wills, trusts and succession plans to ensure they continue to reflect your wishes and remain effective under the new legislation.
Good succession planning is about much more than reducing inheritance tax. It’s an opportunity to protect your family, preserve your business and provide certainty for future generations.
The value of farms, land, businesses and investments changes over time. Accurate and up-to-date valuations are essential when reviewing your estate planning.
Putting Lasting Powers of Attorney (LPAs) in place ensures that trusted individuals can make financial or health decisions on your behalf should you become unable to do so in the future.
Discussing succession planning with family members and business partners can help avoid misunderstandings, reduce the risk of disputes and ensure everyone understands the long-term plan.
Although there is still time before the new rules take effect, seeking advice sooner rather than later provides greater flexibility and more planning opportunities.
Working with a solicitor alongside your financial or tax adviser can help you understand how the changes affect your circumstances and ensure your estate planning continues to protect both your family and your assets.
Elizabeth Collins is an accredited lifetime lawyer, recognised for her expertise in later-life planning, wills, succession planning and inheritance matters.
Working with an accredited lifetime lawyer means you’ll receive specialist legal advice tailored to your individual circumstances. Elizabeth can help you:
Inheritance tax legislation may be changing, but with the right planning and professional guidance, you can continue to make informed decisions with confidence.
If you’d like to discuss how these inheritance tax changes could affect your family, farm or business, contact The Eric Whitehead Partnership today. Our experienced team can help you review your existing arrangements and put the right plans in place for the future.
We are happy to provide you with a FREE conveyancing quote. Please choose an option below to get started.