Changes to the rules on Agricultural Property Relief (APR) and Business Property Relief (BPR) have received significant attention since they were first announced in the 2024 Autumn Budget. In particular, the proposed reforms prompted strong opposition from farmers and rural businesses concerned about the impact on family-owned farms and trading businesses.

APR and BPR Reforms Introduced in the 2024 Autumn Budget

The 2024 Budget introduced a cap on APR and BPR, meaning that these reliefs would no longer be uncapped. Under the original proposals, an estate would be entitled to 100% relief on qualifying agricultural and/or business assets up to a combined value of £1 million, with any excess qualifying assets receiving 50% relief. These changes were due to take effect from April 2026.

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Amendments Announced in the 2025 Autumn Budget

In the 2025 Autumn Budget, the Chancellor announced a limited amendment, confirming that any unused APR/BPR allowance could be transferred to a surviving spouse or civil partner, aligning these reliefs more closely with other transferable inheritance tax allowances.

December 2025 Update: Increased APR and BPR Allowance

Further revisions were announced on 23 December 2025. The Government confirmed that the cap on assets qualifying for 100% APR or BPR would increase from £1 million to £2.5 million per person. When combined with the transferable allowance between spouses and civil partners, this means that a couple may now benefit from up to £5 million of qualifying agricultural and business assets at 100% relief.

These reliefs are available in addition to the standard inheritance tax nil-rate band, currently up to £325,000 per person.

Interaction with the Inheritance Tax Nil-Rate Band

Here at Fiona Bruce LLP the skilled team of Solicitors in our substantial Wills, Trusts and Probate Department, including our Jessica Newton a STEP accredited solicitor, can advise on drawing up your Wills and help to administer estates. Call Rebecca Hall on 01925 263273 for more information.

The contents of this post do not constitute legal advice and are provided for general information purposes only ■