Our experts have analysed the impact of the upcoming Agricultural Property Relief (APR) and Business Property Relief (BPR) changes to inheritance tax (IHT) from April 2026.
Via data obtained through a Freedom of Information request (relating to the 2021-22 tax year) 530 estates worth more than £1 million claimed an average BPR of £3,735,000. Under the new rules, the average IHT bill for these estates will now be £547,000.
Zena Hanks, a Partner in our Private Wealth Group commented that due to property prices being at a high level (particularly in the South East of England), many family businesses could be caught by the £1 million BPR limit and may therefore face a large IHT bill.
David Chismon, Partner and Head of our Land and Rural Group added that many estates will have to generate money in order to pay these IHT bills and that any income would still likely incur taxes. Additionally, having to fund the IHT charges could turn a functioning farming businesses into one that faces real financial trouble.
