From April 2026 agricultural property relief is changing to ensure ‘a very small number of claimants’ pay their share of inheritance tax (IHT) as government figures showed less than 500 farms a year will be affected.

In less than six months the current rate will not exist, with the first £1m of an estate’s value being eligible for IHT relief. Farmers will benefit from a reduced rate of IHT, which would be 20%, discounted from the main 40% rate, which will be liable on assets valued over £1m, but in many circumstances, this could increase to £3m for couples using the regular IHT reliefs with the addition of the nil-rate band. A couple could then potentially pass on up to £3m with their family having to pay no IHT.

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