Inheritance tax on farms
Our solicitors specialise in probate and wills, and offer a free consultation service. Call us on 0333 888 0439 or email info@probateandwillssolicitors.co.uk
Our team is receiving lots of enquiries about farms and inheritance tax.
The government made significant changes to Agricultural Property Relief (APR) and Business Property Relief (BPR) from April 2026.
Agricultural property relief is a type of inheritance tax relief. It reduces the amount of tax that farmers and landowners must pay when farmland is passed to the next generation. Business property relief is similar to APR, but it applies to business assets that are part of the estate.
Formerly, 100% APR and BPR had been available on qualifying agricultural and business assets. But from April 2026, estates now receive 100% relief on the first £1 million of combined agricultural and business property, but only 50% relief thereafter. With many farms and family businesses having limited cash flow, the reduction in inheritance tax (IHT) reliefs could create financial difficulties for owners, or in some cases even force a sale of assets to pay the tax.
How we can help farming families with inheritance tax planning
Our lawyers can advise you about inheritance tax on farms and the reliefs and allowances that may be available. Our team includes Holly Gilbert, a Trust and Estate Practitioner with a background in accountancy, who specialises in inheritance tax planning, succession planning and estate administration.
Holly and her colleagues have been assisting many farming families with succession planning and have taken part in presentations and talks for farmers to encourage them to start thinking about their wills and plans for the future.
For many farming families, inheritance tax planning is about far more than reducing a future tax bill. It is about protecting the family farm, preserving a way of life, and ensuring that the next generation can continue the business without unnecessary disruption.
Farming businesses often involve a complex mixture of assets, including agricultural land, farmhouses, business premises, livestock, machinery, and diversified income streams. As a result, careful planning is essential to ensure that wills, ownership structures and succession arrangements work together effectively.
We can advise on a wide range of issues, including:
- Agricultural Property Relief (APR);
- Business Property Relief (BPR);
- Wills for farmers and farming families;
- Farm succession planning;
- Lifetime gifting strategies;
- Family partnerships and farming businesses;
- Trusts and estate planning;
- Lasting Powers of Attorney; and
- Estate administration following the death of a farmer or landowner.
Many families delay these conversations because they can be difficult, or there is uncertainty about who should inherit particular assets. However, postponing succession planning can create significant problems in the future, particularly where there are multiple children involved, some of whom may work in the farming business and others who do not.
By seeking advice at an early stage, families can often avoid disputes, maximise available tax reliefs and put arrangements in place that reflect their wishes while safeguarding the future of the farm.
Our aim is to provide practical, straightforward advice that helps farming families make informed decisions and plan confidently for the next generation. If you would like to discuss inheritance tax planning, succession planning or updating your will, our specialist team will be happy to help.
