Government to push ahead with IHT changes for farmers

Farm owners warned there are ‘no quick fixes’

Isabel Baxter
clock • 3 min read

The Labour government is pushing ahead with its changes to inheritance tax (IHT), which is expected to impact farm owners.

Draft legislation published yesterday (21 July), confirmed changes to the IHT on farming property limit agricultural property relief (APR) and business property relief (BPR). The proposals limit the 100% APR and BPR relief to the first £1m of combined agricultural and business property. From April 2026, property above that value will benefit from 50% relief, leaving an effective IHT charge of 20% on the estate's value. Together, these previously eliminated the IHT payable on qualifying property, which included most farmland, property and business assets in agricultural estates. The...

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