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Liberty Baker BSc (hons), Graduate Surveyor, based out of Stags Tiverton office looks at the changes due for Agricultural Property Relief and Business Property Relief.
In November 2024 the Chancellor announced significant changes to Agricultural Property Relief (APR) and Business Property Relief (BPR), which will undoubtably have an impact on farmers and landowners. From 6th April 2026, the availability of APR and BPR will be subject to a limit of £1 million. Any qualifying assets above this threshold will only benefit 50% relief from inheritance tax, resulting in effectively a tax rate of 20%.
With these forthcoming changes, many farmers and landowners will be impacted. However, strategic tax planning can help mitigate potential inheritance tax liabilities. Stags’ experienced valuers can assist by providing an up to date valuation. The team offer two types of valuations: a formal RICS Red Book valuation, often required for legal and financial purposes, and a market appraisal. If the valuation is for internal tax planning purposes, a market appraisal is typically recommended.
In order to complete the market appraisal, Stags would undertake an inspection of the assets, followed by a detailed valuation letter. This letter will include a valuation of the whole as well as a breakdown between the component parts, including market values and agricultural values. The team would also be able to liaise with your solicitor and/or accountant to ensure the letter covers everything they require to assist with your tax planning.
If you would like the team to assist in valuing your assets for tax planning, please do not hesitate to contact Stags Professional Services on 01884 235701 or [email protected]
