Sarah Bradford explores what the changes to agricultural property relief and business property relief mean for clients.
Agricultural property relief (APR) and business property relief (BPR) are inheritance tax (IHT) reliefs which shelter qualifying agricultural and business property. Depending on the nature of the property, relief is given at the rate of either 100% or 50%. Prior to 6 April 2026, there is no limit on the amount of qualifying property that can benefit from the 100% rate. However, the position changes from that date.
Background
At the time of Autumn Budget 2024, the Chancellor announced that with effect from 6 April 2026, the 100% rate would only be available on the first £1m of combined qualifying agricultural and business assets. As initially announced, individuals would have
