Government announces changes to new APR/BPR restrictions from 6 April 2026

From 6 April 2026, farmers and business owners were expecting the amount of Agricultural Property Relief (APR) and Business Property Relief (BPR) available at the highest rate of 100% relief to be restricted to a cap of £1 million. The Government have announced today that this new limit will be set instead at £2.5 million. Please see below for the text of the announcement shared with us today. There is also an accompanying press release. 

"The Government has announced further changes today (23 December) to the forthcoming reforms of agricultural property relief and business property relief from 6 April 2026. This is after listening carefully to feedback from the farming community, family businesses and their representatives. The announced changes mean the Government is going further to protect more farms and businesses, while maintaining the core principle that most valuable agricultural and business assets should not receive unlimited relief. 

"The Government has announced that the allowance for 100% rate of relief will be increased from £1 million to £2.5 million.  This means a couple will now be able to pass on up to £5 million of agricultural or business assets between them, on top of the existing allowances such as the nil rate band.   

"In line with the changes to the personal relief allowance, trust relief allowance amounts will also be increased from £1m to £2.5m. 

"The increase to the allowance will be reflected in Government amendments to the Finance Bill next month."