29th December 2025
Following significant public pressure from farming and business groups, the Government announced on 23 December 2025 that the proposed limits of £1m for both Agricultural Property Relief and Business Property Relief, that were due to be introduced from April 2026, have been increased to £2.5m.
Under the first announcement made in the Autumn 2024 Budget, the threshold for qualifying Agricultural Property and Business Property was capped at £1m. Any value above this would be taxed for Inheritance Tax at a reduced 20%. This marked a very significant shift where these assets previously attracted full Inheritance Tax relief.
In the Autumn Budget 2025, an adjustment was announced that meant unused limits could be transferred between spouses and following the December 2025 announcement, this will allow up to £5m of APR/BPR to be available between a married couple.
It remains the case that anything above the new cap of £2.5m (£5m per married couple) will be taxed at the reduced 20% Inheritance Tax rate.
If you are unsure how the revised APR and BPR limits could affect you, our tax specialists are here to help. Contact Thompson Jenner to discuss your circumstances.
