The government today announced that the level of the Agricultural and Business Property Reliefs threshold will be increased from £1m to £2.5m when it is introduced in April 2026.
Commenting, Adam Brewer, Senior Investment Director at Rathbones (Exeter office), says: “Generally, this further dilution of the original punch will likely be welcomed by farmers. However, let’s not forget they are still contending with the usual pressures of hefty capital costs and wafer-thin profit margins. Even the eventual £5m allowance may still fall short of preventing family farms from being broken up, and ongoing political uncertainty only adds to the anxiety.
While the higher threshold may feel like a pre‑Christmas reprieve, many farmers still face a hefty inheritance tax bill. This change doesn’t remove the need for robust planning. Decisions around land use, business structure, and valuations will ultimately determine the longevity of the family farm. Families should review succession plans now – timely advice can make the difference between relief and regret.”
