#agricultural-property-relief

#agricultural-property-relief

Farmland continues to offer a powerful value proposition: scarcity, price resilience, and unparalleled tax reliefs. According to the Royal Institution of Chartered Surveyors (RICS), UK farmland values rose 7.3% in 2024, buoyed by investor demand, food security concerns, and the monetisation of natural capital through carbon credits and biodiversity offsets.

In the Autumn Budget, the Government announced significant changes to a valuable IHT relief, APR. Under the proposed changes, effective from 6 April 2026, a £1m cap will apply to agricultural property, which is, under the current rules, wholly relieved from IHT regardless of its value. Any value exceeding the £1m cap will only benefit from 50% tax relief rather than 100% relief, leading to a considerable increase in tax liability for farmers.