Sarah Bradford highlights planning issues arising from the restriction of 100% business and agricultural property relief.
Agricultural property relief (APR) and business property relief (BPR) allow qualifying assets to be passed on either free of inheritance tax (IHT) or at a reduced rate. Currently, there is no limit on the value of qualifying assets that are able tobenefit from relief at the 100% rate.
However, this is to change from 6 April 2026. From that date, the 100% rate of relief will only be available for the first £1m of combined qualifying agricultural and business assets. Once the £1m allowance has been used up, any further assets that would otherwise attract 100% relief will be subject to relief at 50%.
These changes will impact farming clients and those with businesses that they had planned to pass on. <> <
