The government has shared more detail on its planned changes to Agricultural Property Relief (APR) and Business Property Relief (BPR), set to begin on 6 April 2026. These updates aim to make the system “fairer and more sustainable,” but will likely disappoint many in farming and business communities. 

Here’s what’s changing: 

• APR and BPR will still be available, but full (100%) relief will only apply to the first £1 million of combined agricultural and business property. 

• Any value above £1 million will only get 50% relief. 

• For certain listed shares (like those on the AIM market), the relief will be cut to 50% across the board, with no £1 million allowance. 

These changes are expected to go ahead as originally announced in the Autumn Budget 2024 – no major updates or reversals have been made since then. 

What’s not changing: 

• The government has decided not to move forward with its previous proposal to tighten the rules around property placed in multiple trusts. 

A small piece of good news: 

• The option to pay Inheritance Tax (IHT) in equal instalments over 10 years, interest-free, will now apply to all property eligible for APR or BPR. 

• The new £1 million cap will rise with inflation (CPI), but it will stay fixed at that level until at least the 2029/30 tax year, in line with frozen IHT thresholds.