APR and BPR changes from April 2026: what the new inheritance tax rules mean for farms and businesses

Changes to the availability of agricultural property relief (APR) and business property relief (BPR) are expected from 6 April 2026. This was first announced at the Autumn Budget 2024.

Original proposals and inheritance tax impact

As originally planned, the change would have significantly increased the IHT payable on the transfer of many farms and businesses. Two recent major developments, however, now look set to considerably soften the impact.

Allowance under the original proposals

Under the original proposals, the allowance for the 100% rate of relief was set at £1 million for qualifying business and agricultural assets, with 50% relief available for assets in excess of this. This was a per person limit, and not intended to be transferable between spouses and civil partners.

Revised allowance and transferability between spouses

The position has now changed significantly, with the allowance for the 100% rate of relief increasing to £2.5 million and becoming transferable between spouses and civil partners. Any unused £2.5 million allowance on the death of a spouse or civil partner will be transferable to a surviving spouse or civil partner.

What this means in practice

This means that overall, a couple will be able to pass on up to £5 million of qualifying agricultural or business assets between them, without paying IHT, on top of the existing allowances, such as the nil rate band.

Next steps

Our team can review your circumstances and explain how the revised APR and BPR changes may apply to you. Click below to get in touch with us.