The government has announced today (Tuesday 23rd December) that the threshold for Agricultural Property Relief (APR) and Business Property Relief (BPR) will increase from £1 million to £2.5 million from April 2026.
This change means that spouses or civil partners will be able to pass on up to £5 million of qualifying agricultural or business assets free of inheritance tax, in addition to existing allowances.
The revised threshold follows feedback from farmers and businesses after the 2024 Budget and aims to better protect family farms and trading businesses.