Changes to BPR and APR Allowance from April 2026

Following backlash from the farming community and investors, the government has changed its plans in relation to the new limits due to be imposed on Agricultural Property Relief (APR) and Business Property Relief (BPR) from 6 April 2026 regarding inheritance tax.

Previously, these assets have attracted up to 100% relief from inheritance tax but the government now intend to restrict this level of relief to the first £2.5 million of combined agricultural and business assets, rather than the £1 million cap previously proposed. Qualifying assets above this allowance will attract relief at 50%, essentially equating to an inheritance tax rate of 20%.

The allowance will be transferable between spouses, meaning that a combined allowance of £5m could be available to couples on top of other allowances such as the nil-rate band.

While met with scepticism and anger by many, the changes in these proposals will at least reduce the number of farms and business owners becoming liable for increased inheritance tax. 

If you have concerns regarding the inheritance tax position for your estate and would like to discuss general ways in which this could be mitigated, please get in touch with us to review your options on 01892 662233 or reception@dwlaw-online.com. 

Written by Elizabeth Shepperd - Solicitor