Is Now The Time To Review Farm and Business Succession Plans

Proposed changes to inheritance tax reliefs have been widely discussed over the past year, particularly within farming and business communities.

With the reforms now confirmed for April 2026, families who rely on Agricultural Property Relief (APR) or Business Property Relief (BPR) should take time to understand what the new rules mean in practice and how existing plans may be affected.

These reliefs have traditionally enabled farms and family businesses to be passed on without forcing sales or restructuring to meet an inheritance tax liability.

April 2026 Changes

APR and BPR reduce the value of qualifying agricultural and business assets for inheritance tax purposes. In many cases, they have allowed those assets to pass at death with no inheritance tax payable.

From April 2026, this approach will change. Relief at 100% will no longer apply without limit. Instead, a cap will be introduced on the total value of qualifying assets that can benefit from full relief.

Under the revised regime:

• Individuals will be able to claim 100% APR and BPR on qualifying assets up to a combined value of £2.5 million
• Assets above that threshold will generally attract relief at 50%, which means the excess value may be taxed at up to 20%
• Allowances can be transferred between spouses or civil partners, potentially doubling the relief available on the second death

Although the government increased the cap from its earlier proposal, the move still represents a significant change for estates with high-value land or business interests.

Why Existing Plans May Need Revisiting

Many succession and estate plans have been built on the assumption that APR or BPR would apply in full, regardless of asset value. For some families, that assumption will no longer hold.

This is particularly relevant where:

• Land values have increased significantly over time
• Businesses hold substantial property or investment assets
• Wills rely on reliefs to equalise inheritances between family members
• Liquidity within the estate is limited

Without review, there is a risk that inheritance tax liabilities could arise unexpectedly, placing pressure on the business or farm at the point of succession.

Planning Considerations Going Forward

Looking Ahead

Although April 2026 is still a couple of months away, effective planning often takes time. Acting early can provide more flexibility and a wider range of options.

Specialist private client advice, alongside financial and tax input where appropriate, can help families and business owners understand how the changes apply to them and put practical arrangements in place.

The rules may be changing, but careful planning can still support long-term stability and continuity.

Our Private Client team advises on succession planning, inheritance tax, wills, trusts, and estate administration for individuals, families, business owners, and agricultural clients.

If you would like to review your current arrangements or discuss how the April 2026 changes may affect you, please contact us to arrange an appointment or call 0800 088 6004.