Keep up to date with the latest Stags news
This afternoon the Chancellor announced important changes to Agricultural Property Relief (APR) and Business Property Relief (BPR), that will have wide reaching implications for farmers and landowners.
From April 2026, APR and BPR, which are currently available at a maximum rate of 100% on all qualifying business and agricultural assets (of unlimited value), will be revised to apply at a maximum rate of 100% on only the first £1 million of qualifying assets within an estate; after which the relief will be available at a reduced rate of 50% (meaning an effective tax rate of 20%).
It is suggested that the allowance of 100% relief on the first £1 million of assets will protect “small family farms”. However, with average UK land values at £8,700/acre, holdings comprising in excess of 115 acres of bare land could be subject to Inheritance Tax at 20% (£1,740/acre), with the potential size threshold for equipped farms or those with development land etc. being considerably less.
These changes will likely spur a rush of activity to gift or settle assets into trust before April 2026. The importance of obtaining professional tax and valuation advice before acting in haste cannot be overemphasised; with which, as far as valuations are concerned, our experienced team of agricultural valuers can assist.
In more positive news, legislation to be implemented between now and then, will extend the scope of APR to cover land managed under an environmental agreement with, or on behalf of, the UK government, devolved governments, public bodies, local authorities, or approved responsible bodies.
For further advice or to arrange a formal valuation of your agricultural land and farming assets, please do not hesitate to contact the Stags Professional Services Team on 01884 235701 or [email protected] to be put in touch with your local professional.
