What the New APR/BPR Rules Mean for Your Family Farm

From April 2026, the rules around inheritance tax relief for farms and family businesses are changing and for many rural families this is one of the biggest shifts in a generation.

If you own farmland or run a farming business, now is the time to understand what this means for the future.

What’s actually changing? 

Until now, Agricultural Property Relief (APR) and Business Property Relief (BPR) have often allowed farms and businesses to be passed on free from inheritance tax, with no overall cap.

From 6 April 2026:

• You’ll get 100% relief on the first £2.5 million of qualifying assets
• Anything above that will only receive 50% relief

In simple terms, larger farms may now face an effective 20% inheritancetax charge on value above this threshold.

What does this mean for farming families?

The good news is that many smaller farms won’t be affected.

• The £2.5 million allowance is per person
• For couples, this can be combined to up to £5 million

However, with land values where they are, many family farms will exceed this level once land, buildings, and business assets are added together.

This means:

• Inheritance tax is now more likely to happen.
• There may be a need to fund a future tax bill.
• Succession planning becomes more important than ever.

Why this matters now

These rules are now coming into force, so planning can’t be left until later.

In addition, earlier changes from October 2024 may already affect certain gifts and planning arrangements.

For many families, this is the first time they’ve had to think seriously about:

• How the next generation will take over.
• Whether assets are structured efficiently.
• How any tax bill would be paid.

What should you be thinking about?

Every farm is different, but some common steps include:

• Reviewing your will and ownership structure
• Considering lifetime gifting or trust planning
• Checking whether your assets qualify fully for relief
• Thinking about how any tax liability could be funded

The key point is simple: What worked before may not work going forward.

Final thoughts

These changes don’t mean the end of APR and BPR but they do mean the end of unlimited relief.

For many farming families, the focus is shifting from “no tax” to “how do we manage the tax efficiently?”

Getting advice early can make a significant difference to how smoothly your farm passes to the next generation.

To discuss how these changes could affect your farm and explore practical planning options, Contact Us today.