If you own a farm, land, or a family business, you have probably seen the headlines about inheritance tax changes. The key point is simple: do not panic, but do not ignore it.
23rd January 2026
From 6 April 2026, the rules around Agricultural Property Relief (APR) and Business Property Relief (BPR) are changing, and for some estates this could create an inheritance tax bill where none was expected.
This blog explains what is changing, why it matters, and the practical steps you can take now.
What are APR and BPR?
APR and BPR are inheritance tax reliefs that can reduce, or eliminate, inheritance tax due on certain agricultural and business assets when someone dies. In many cases, these reliefs have allowed farms and family businesses to pass to the next generation without a forced sale of land or core business assets to pay a tax bill.
What is changing from 6 April 2026?
The government is ending the concept of unlimited 100% relief on qualifying APR and BPR assets. From 6 April 2026, the headline changes are:
- A new £2.5 million allowance per person for assets that qualify for 100% APR/BPR, applying to the combined value of qualifying agricultural and business property
- Anything above £2.5 million (that still qualifies) will generally receive 50% relief, which can mean an effective inheritance tax rate of up to 20% on that excess (rather than 40%)
- Unused allowance can transfer between spouses and civil partners, which can allow up to £5 million of qualifying APR/BPR assets to pass at 100% relief between them, before you then consider other available inheritance tax allowances (such as the nil rate band)
- The government has also confirmed that inheritance tax on relevant assets can be paid by interest-free instalments over 10 years (where the instalment option applies)
This £2.5 million figure was confirmed in a government announcement on 23 December 2025, increasing the previously proposed £1 million threshold.
Why this matters
For land-rich or asset-heavy families, the change is not just theoretical. If the estate value exceeds the new allowance, a tax liability may arise and that can create pressure on cashflow, succession plans, and business continuity.
Even if you think you are under the thresholds, it is still worth reviewing. Values move. Structures evolve. And older wills and succession arrangements might not land the way you intended under the new rules.
Practical steps to take now
1) Sense-check your current plan against the new rules
Review wills, trusts, partnership or shareholder arrangements, and any existing succession planning.
2) Get up-to-date valuations
Accurate, current valuations for land, property, business interests, and investment assets make planning decisions much clearer.
3) Think beyond tax
Good planning is also about control, fairness between family members, protecting the business, and reducing the risk of disputes later.
4) Put safeguards in place
Lasting Powers of Attorney can be an important part of wider planning, particularly where business decisions might need to be made quickly.
5) Talk early
Clear conversations with family and business partners often prevent misunderstandings later, especially where succession is sensitive.
How Ansons can help
Ansons’ Wills, Probate and Trusts team advises individuals, families, and business owners on wills, estate planning, trusts, and succession planning, including inheritance tax and business succession considerations.
If you would like a review of your position ahead of April 2026, we can help you understand what the changes mean for your assets, your family, and your long-term plans.
Contact Ansons to arrange a review
Disclaimer: This article is for general information only and does not constitute legal advice. Every situation is different - please seek tailored advice before taking any action
