UK Inheritance Tax: Agricultural Property Relief Rules & Reforms

HeirPlan
By Nik Patel 
Updated: April 24th, 2026

Agricultural Property Relief continues to play an important role in succession planning for UK farmers and landowners, but the rules are changing.

From 6 April 2026, 100% relief is capped through a new £2.5 million combined allowance for Agricultural Relief and Business Relief, qualifying assets above the allowance attract 50% relief, and the allowance can be transferred between spouses and civil partners.

You can find the official HMRC guidance on the Agricultural Relief for Inheritance Tax page and the policy paper on the 2026 changes.

Reviewing your will, ownership structures, tenancies and any planned lifetime gifts in light of the new rules is sensible. Because Agricultural Relief depends on detailed conditions and the facts of each case, you should always take professional advice from a solicitor, chartered tax adviser or land agent before acting.

This guide explains how Agricultural Property Relief works, what counts as qualifying agricultural property, and how the rules are changing for deaths on or after 6 April 2026 following the reforms confirmed by HMRC.