I Own a Farm
The relief that kept family farms in family hands has just been capped.
From April 2026, Agricultural Property Relief and Business Property Relief share a combined £1m cap at 100%. Above that, relief drops to 50% — an effective 20% IHT rate.
What typically applies
For a mid-sized farm — say 200 to 300 acres with a farmhouse — this can mean a six or seven-figure IHT bill on an asset the family has no intention of selling.
The planning window is now, because lifetime gifts still fall outside the estate after seven years under the standard rules. Waiting for April 2026 to arrive means losing the tool that solves the problem.
Where to go from here
In-depth problem page
Protecting a Farm from Inheritance Tax
Full analysis of the APR cap, worked examples, and what to do before April 2026.
In-depth problem page
The Dorset farm with a hidden tax problem
Real story: a 240-acre farm and the tax bill nobody realised was coming.
Regulated adviser
Insure the Inheritance Tax Bill
Whole of Life cover to fund what tax remains — regulated advice.
Delivered by IMS
Wills
The starting point for any farm succession plan.