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Agricultural Business Services
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Inheritance Tax Changes for Farmers Act Now Before April 2026
At Heald Solicitors, our agricultural law experts understand the unique challenges faced by the farming community when planning for the future. Recent changes announced in the Budget will affect how Inheritance Tax (IHT) applies to agricultural and business assets, and these new rules come into force at midnight on 5 April 2026.
While this deadline may seem some months away, it’s important to act now. Reviewing your estate and implementing any necessary changes can take time, and we want to ensure everything is completed well before the new regulations apply.
What Has Changed?
The key update relates to Agricultural Property Relief (APR) and Business Property Relief (BPR):
- Farmers currently benefit from 100% IHT relief on qualifying agricultural and business assets up to £1 million.
- Previously, this allowance could not be transferred between spouses or civil partners. If one spouse died and left everything to the other, any unused allowance was lost.
- From April 2026, any unused allowance will be transferable to a surviving spouse or civil partner, even if the first death occurred before that date.
- This means a surviving spouse can combine both allowances, giving up to £2 million of agricultural/business assets fully exempt from IHT when passed on to the next generation.
Important: This change only applies to spouses or civil partners. Beyond this transferable allowance, no other changes were made in the Budget.
This change only applies to spouses or civil partners. Beyond this transferable allowance, no other changes were made in the Budget.
Why Plan Ahead?
Although the new rules take effect in April 2026, early planning is essential. Complex farming estates often require time to restructure and document properly. Acting now ensures:
- You maximize available reliefs.
- You avoid unnecessary tax liabilities.
- Your succession plans are clear and legally secure.
How Heald Solicitors Can Help
Our experienced team can:
- Review your current estate and IHT position.
- Advise on restructuring options to take advantage of the new transferable allowance.
- Prepare all necessary documentation to protect your family and your farm.
Contact Us Let's have a chat
Heald Solicitors are leading agricultural solicitors in Bedfordshire, Buckinghamshire, Milton Keynes, Northamptonshire & Oxfordshire. We help farmers, landowners, and rural businesses with farm tenancy agreements, property sales, disputes, planning, and succession. Trusted by the farming community for clear legal solutions.
If you wish to talk to an expert solicitor, please get in touch with our legal expert, please get in touch with our legal expert David Dees .
01908 355 405[email protected]
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