Tax Planning
Maximising Reliefs in Heritage and Business Property Reliefs Before 6 April 2026
From 6 April 2026, Agricultural Property Relief (APR) and Business Property Relief (BPR) undergo major limits—don’t miss ways to preserve estate value.
By NomadicTax Research Team • 5-8 min read • June 1, 2026
## What’s changing
Starting **6 April 2026**, UK Inheritance Tax rules for APR and BPR reliefs are changing significantly:
- The combined allowance for **100% relief** under APR and BPR per individual is set to **£2.5 million**. ([taxscape.deloitte.com](https://taxscape.deloitte.com/article/uk-tax-landscape--key-changes-for-2026.aspx?utm_source=openai))
- Any qualifying agricultural or business assets **above £2.5 million** will qualify only for **50% relief**, rather than full relief. ([taxscape.deloitte.com](https://taxscape.deloitte.com/article/uk-tax-landscape--key-changes-for-2026.aspx?utm_source=openai))
- For married couples or civil partners, the allowance can be combined so that together they can pass up to **£5 million** at 100% relief, where applicable. ([bdo.co.uk](https://www.bdo.co.uk/en-gb/insights/tax/general-tax/tax-changes-in-2026?utm_source=openai))
## Why this matters
This reform reduces the relief amount for those with larger estates and business holdings, raising potential Inheritance Tax exposure. International and domestic landowners, family-owned businesses, farms and trusts are all impacted. ([kpmg.com](https://kpmg.com/uk/en/insights/tax/tmd-inheritance-tax-changes-apr-and-bpr-allowances-increased.html?utm_source=openai))
## What you should do now
Prepare ahead to minimise tax costs:
- **Review current estate and asset structure** — identify qualifying assets, their value, and whether advice should restructure holdings before the sunset date.
- **Update succession planning**, including wills, trusts, and gifting strategies, while full relief still applies, especially for assets likely to exceed the £2.5m threshold. ([kpmg.com](https://kpmg.com/uk/en/insights/tax/tmd-inheritance-tax-changes-apr-and-bpr-allowances-increased.html?utm_source=openai))
- **Consider instalment options** — HMRC extends instalment payment eligibility for qualifying assets under BPR/APR, but be aware of interest implications. ([kpmg.com](https://kpmg.com/uk/en/insights/tax/tmd-inheritance-tax-changes-apr-and-bpr-allowances-increased.html?utm_source=openai))
- **Review valuation data** — ensure that current asset valuations are correct and defensible for Inheritance Tax calculations.
## Case example
- **Scenario**: Jane owns farm land valued at £3 million not under a company, with no other business or agricultural property. Under old rules, she'd have gotten 100% relief on all of it. Under new rules:
- £2.5 million = 100% relief
- £0.5 million = relief at 50% → she’d pay IHT on half the value above £2.5 million.
- To mitigate, Jane may consider gifting some land before 6 April or adjust her trust structure so that multiple trusts (if established before later cutoff dates) each have a full £2.5 million allowance. ([kpmg.com](https://kpmg.com/uk/en/insights/tax/tmd-inheritance-tax-changes-apr-and-bpr-allowances-increased.html?utm_source=openai))
## Bottom line
If you own or expect to inherit farm, business, or unquoted trading company assets, these new rules mean action is needed **before 6 April 2026**. Consult estate planning experts, update legal documents, and take steps now while the higher relief still applies.