BPR and APR Allowance Update

Alongside announcing that the freeze on the Inheritance Tax (“IHT”) thresholds has been extended for a further year until 2030/31, a more welcome announcement was made by the Chancellor that the £1M allowance for 100% agricultural property relief and business property relief will be transferable between spouses and civil partners.

This follows sustained lobbying from professional bodies and farming representatives since the restriction to the reliefs was announced in the 2024 Autumn Budget, and while it is a logical change to align the way the relief will work with the other transferable IHT thresholds, there will be disappointment that there are no further amendments to the legislation to restrict the 100% relief, which comes into effect from 6 April 2026.

If you’d like tailored advice on how these changes affect your estate or business succession planning, our team are here to help.

Written by Helen Cross.