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Agricultural Property Relief

Farm

What is Agricultural Property Relief (APR)?

APR is a valuable tax relief available under the Inheritance Tax Act 1984. It can significantly reduce the amount of Inheritance Tax (IHT) payable when agricultural assets are passed on either during your lifetime or after death.

If you own farmland or agricultural buildings, seeking specialist APR advice could make a substantial difference to your estate planning.

 

How long do I need to own or occupy land in order to qualify for APR?

To qualify for APR, the following rules apply:

- For property and land owned and occupied for agricultural purposes (or via a company or spouse/civil partner), the time frame is 2 years immediately before transfer.

- For land that was owned but let to someone else (e.g. under a Farm Business Tenancy), then the time frame is 7 years.

 

How Much Relief Can You Get?

APR is available at two levels:

100% Relief applies where:
- The owner farmed the land themselves
- The land was let on short-term grazing licences
- The tenancy began on or after 1 September 1995
- Certain older tenancies meet specific historical conditions 

50% Relief typically applies to:
- Land let under older tenancies (e.g. Agricultural Holdings Act 1986 agreements starting after March 1981) 

Changes from April 2026

Recent government proposals will change how APR applies:

- Relief will be fully available on the first £2.5 million of qualifying assets and is also transferable to spouses
- Assets above this threshold will receive 50% relief
- The remaining estate will be taxed at 40% IHT 

Why Planning Matters Now

With careful planning, APR can still play a crucial role in preserving agricultural wealth across generations, and protecting what matters the most to you and your family.

To protect your estate, you should seek specialist advice to:

  • Review ownership structures
  • Consider succession planning early
  • Ensure assets qualify for relief under the new rules
  • Consider other taxes such as Capital Gains Tax 

 

How can Jordans Solicitors help?

For over 75 years, our Wills and Probate Solicitors have been providing advice and helping clients with all aspects of the legal process in relation to the planning of your affairs.

Our team is made up of highly experienced lawyers who are specialists in this area of law. They are here to listen to your wishes and to provide expert advice whilst being committed to excellent client care through a client focused, efficient and cost effective service. 

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Contact Us

We can help wherever in the UK you are based as our team act for clients nationally. We offer online appointments as well as out-of-hours appointments.

We also have offices based across Yorkshire, for those who wish to book a face-to-face appointment. 

To see how Jordans Solicitors can help you, call 0330 300 1103 or 01924 868933 or request a call-back.