Agricultural and Business Property Relief- APR and BRP changes

The changes to agricultural and business property relief announced at the time of the 2024 Autumn Budget come into effect from 6 April 2026. The changes mean that an individual is only able to benefit from the 100% rate of relief on the first £1 million of qualifying agricultural and business property. Once the allowance has been used up, assets that would otherwise have qualified for relief at the 100% rate will secure relief at 50%.

It was announced at the 2025 Autumn Budget that where a person dies without using their £1 million allowance in full, their spouse or civil partner’s estate will be able to benefit from the unused portion, in the same way that their estate can benefit from the unused portion of the nil rate band and residence nil rate band.

The ability to transfer the £1 million allowance to the surviving spouse or civil partner’s estate simplifies will planning, meaning that spouses/civil partners can leave everything to each other without risking the loss of 100% APR/BPR on assets worth up to £1 million.

BPR and APR are available in addition to the nil rate band and residence nil rate band. This means that a couple may be able to pass on a farm or a business worth up to £3 million free of inheritance tax.

If you are worried about the impact of the changes, get in touch to discuss what they mean for you and the potential planning opportunities available.