Inheritance Tax Reform: The Importance of Full Farm Valuations
As has been widely publicised, from the 6th April 2026, there are set to be major changes to Agricultural Property Relief (APR) and Business Property Relief (BPR).
Qualifying agricultural property such as the farmhouse, farm buildings and land currently qualify for 100% APR on their agricultural value whilst the value of any machinery, live and deadstock qualifies for 100% BPR. From April 2026 though, these reliefs will have a combined cap of £1 million for 100% relief on qualifying assets with anything above this only qualifying for 50%.
Historically, due to machinery, live and deadstock qualifying for 100% BPR, a professional valuation of these assets hasn't been necessary with HMRC simply accepting balance sheet values rather than market values. As a result of the cap and consequently these assets not necessarily benefitting from BPR, from April 2026, there will be a need for a full farm valuation to provide accurate market values of these assets, as well as the property.
“These changes will have significant implications on the vast majority of farms and we are advising our clients to take steps to plan accordingly. We have already completed a number of informal valuations which can then be used to aid succession and tax planning discussions between family members and also their advisors.”
Stags has over 150 years of knowledge and experience in valuing all agricultural assets including property, livestock and machinery across the South West. We are able to complete full farm valuations to include all aspects of a farm both now, as part of any tax planning exercise to assess any liability under the changes, and from the 6th April 2026, when these changes are due to take effect.
If you require an accurate informal valuation for tax planning or need a full farm red book valuation completed by one firm with the necessary experience and knowledge, please contact Stags Professional Services on 01884 235701 or email [email protected].
Matthew Wilcox, Professional Partner at Stags comments:
