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What changes are being made to APR and BPR?

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What is Agricultural Property Relief (APR)?

APR is a type of IHT relief which reduces the amount of tax that farmers and landowners must pay when farmland is passed down to their next generation.

What is Business Property Relief (BPR)?

BPR allows you to claim IHT relief on business assets you own, this includes shares in qualifying businesses. There is certain criteria for BPR to be available to you, and our expert solicitors at Johnson Astills can advise you further about this.

What are the changes?

Currently, APR/BPR is available at a rate of 100% or 50% depending on the type of asset held, and the relief is unlimited. However, from 6th April 2026, the relief will be capped at £1 million. For businesses that exceed this amount, the rate of relief will reduce to 50%, and anything above this is subject to IHT

This relief is on top of other exemptions that may be available, such as, spousal exemptions, charity exemptions and nil rate bands.

If you are affected by the APR/BPR changes and wish to discuss this in some further detail, then please feel free to call our expert solicitors at Johnson Astills who would be pleased to assist you with this. You can call us at our office in Leicester or our office in Loughborough. Alternatively, you may prefer to email us at legal@johnsonastills.com or fill in our enquiry form.

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