A traditional British farmhouse with surrounding farmland, symbolising inheritance tax changes to Agricultural and Business Property Relief from April 2026.

Passing on the farmhouse – Implications of the changes to APR and BPR

Property
September 16, 2025•1 min read

From 6 April 2026, the 100% relief for Agricultural Property Relief (APR) and Business Property Relief (BPR) will be capped at £1m per estate, with excess property only qualifying for 50% relief.

Each estate has a £1m allowance, but unused amounts cannot be transferred to a spouse or civil partner. For couples, leaving everything to each other means only one allowance applies, limiting relief. Instead, leaving £1m each to children or grandchildren can secure 100% relief on £2m.

Lifetime transfers (PETs) may help, but gifts made after 30 October 2024 where the donor dies after 6 April 2026 fall under the new cap. Relief applies only if the donor survives 7 years (tapering after 3 years).

Farmers should review wills and take advice.

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