The Agricultural and Business Property Reliefs threshold will be increased from £1million to £2.5m when it is introduced in April 2026, the government has confirmed.
This allows spouses or civil partners to pass on up to £5million in qualifying agricultural or business assets between them before paying inheritance tax, on top of existing allowances.
Following the reforms to Agricultural and Business Property Reliefs announced at Budget 2024, the government has listened to concerns of the farming community and businesses about the reforms.
Having carefully considered this feedback, the government is going further to protect more farms and businesses, while maintaining the core principle that the most valuable agricultural and business assets should not receive unlimited relief.
This can be a useful way of managing a potential inheritance tax bill | GETTY
