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Agricultural property relief (APR)


Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance
tag-icon Autumn Budget 2024

Agricultural property relief (APR)


Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance
tag-icon Autumn Budget 2024
imgtext

What is agricultural property relief (APR)?

APR is given by virtue of IHTA 1984, s 116:

‘Where the whole or part of the value transferred by a transfer of value is attributable to the agricultural value of agricultural property, the whole or that part of the value transferred shall be treated as reduced by the appropriate percentage.’

The ‘appropriate percentage’ is either 50% or 100%, with the rate of relief depending on the nature of the property, the interest held and whether certain conditions are met.

From 6 April 2026, the 100% rate of relief for BPR and APR will be restricted. 100% relief will only be available on the first £1m of relievable property and any value in excess of this will be relieved at 50%. See the Business Property Relief and Agricultural Property Relief ― 100% relief cap from 6 April 2026 guidance note for details.

Definition of agricultural property

APR applies only to agricultural property, which is defined in IHTA 1984, s 115(2) as follows:

‘“Agricultural property†means agricultural

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  • 01 Nov 2024 07:10

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