The government has announced Inheritance Tax (IHT) reforms to Agricultural Property Relief and Business Property Relief, effective from 6 April 2026. Currently, qualifying business and agricultural assets can receive up to 100% relief thereby fully protecting family farms and businesses.

Under the new rules, the 100% relief will still apply but only to the first £1 million of combined agricultural and business property. Beyond this threshold, the relief will be reduced to 50%.

Additionally, Business Property Relief will be reduced for shares classified as “not listed” on recognised stock exchanges, such as AIM, reducing the relief rate from 100% to 50% in all cases.

A consultation has been launched on how the restrictions will apply to trusts.

We can assess the impact of the proposed changes and whether any action should be taken prior to 6 April 2026.