The government has announced new changes to inheritance tax that will affect farmers and rural families across the UK from 6 April 2026. These changes focus on Agricultural Property Relief (APR) and Business Property Relief (BPR), which are important tools that help farming families pass land and businesses on to the next generation. 

Under the new rules, farmers will still benefit from 100% inheritance tax relief on the first £2.5 million of qualifying agricultural and business assets. Any value above this level will continue to receive relief, but at a reduced rate of 50%, meaning a lower effective tax charge than standard inheritance tax. For married couples or civil partners, allowances can be combined, allowing up to £5 million of qualifying assets to be passed on before tax is applied. 

These changes are a welcome improvement on earlier proposals and show that the government has listened to concerns raised by the farming community. The higher threshold will help protect family farms and provide greater certainty for future planning. 

Good tax planning will be more important than ever. At Kivells, we can help farmers and landowners understand how these changes may affect them. We provide professional valuation advice to support inheritance tax and estate planning, ensuring assets are correctly assessed. Kivells can also carry out RICS Red Book valuations for probate, giving clients confidence that valuations meet the required professional and legal standards. 

Early advice and accurate valuations can make a real difference when planning for the future. For more detailed advice on your farm valuation needs, contact your nearest Kivells Office.