A plain-English summary for landowners. Last checked against GOV.UK on 13 October 2026.
This is not tax advice. It is general information only. Everyone's position is different, so please speak to your own accountant or solicitor before making any decisions.
Agricultural Property Relief (APR) and Business Property Relief (BPR) can reduce the inheritance tax due on qualifying farmland and business property. From 6 April 2026:
When the changes were first announced in October 2024, the figure was £1 million. The government raised it to £2.5 million in December 2025, before the changes took effect.
Any unused part of the £2.5 million allowance can pass to a surviving spouse or civil partner. This means a couple can pass on up to £5 million of qualifying property with full relief, on top of the normal nil-rate bands.
Inheritance tax due on qualifying agricultural or business property can be paid in 10 equal yearly instalments, interest-free.
Qualifying gifts made on or after 30 October 2024 can count towards the allowance if the person who made the gift dies within 7 years.
For most families, probably not. The government estimates that only a small number of estates claiming agricultural relief will pay more inheritance tax in 2026–27, so most estates are not affected. Your accountant or solicitor can tell you whether your own estate is.
Some families use changes like this as a prompt to review their long-term plans, whoever is affected. If you are doing that, it can help to understand whether your land might have planning potential and what that could mean.
A land promoter can look at this for you. Under a promotion agreement, the promoter funds the planning work, so it can be explored at no cost to you, and nothing is decided without your agreement and your own solicitor's advice. We introduce landowners across the West Midlands and Warwickshire to experienced promoters. We don't give tax advice, and we'd always encourage you to involve your own advisers.
Email [email protected] or use our enquiry form for a free, no-obligation conversation.
Important: this guide is general information only and is not tax, legal or financial advice. Tax rules can change and every estate is different. Please speak to your own accountant or solicitor about your position. Arden Land Partners is not a tax adviser.
Related guide: What is grey belt land?