Business property relief (BPR) meaning

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In this issue: Budgets and Finance Bills UK taxes for Private Client HMRC Manuals updates Tax avoidance, evasion and non-compliance Family businesses and ownership structures Contentious trusts and estates Pensions, insurance and tax efficient investments International Question of the week Daily and weekly news alerts LexTalk®Private Client: a Lexis+® community New and updated content Trackers Latest Q&As Useful information Budgets and Finance Bills Finance Bill 2026 published Finance (No 2) Bill 2024–26 was released on 4 December 2025 with explanatory notes. Also known as Finance Bill 2026 (FB 2026), it was presented in the House of Commons and received its first reading on 2 December 2025. For insights into the principal Private Client measures in FB 2026, see News Analysis: Private Client—publication of Finance Bill 2026. For commentary on the key Tax provisions, see News Analysis: Tax—publication of Finance Bill 2026. For comprehensive tracking of FB 2026—covering a...

See Q&A: See Q&A: The estate included assets qualifying for agricultural property relief (APR) and/or business property relief (BPR), directed by the Will to be held on discretionary trust. Two years have elapsed since death and the trustees are looking to appoint property out of the trust, but are wary of exit charges. Will APR still be available on an exit if, during the two-year period, the trustees have owned/occupied the agricultural land, even though only one of the three trustees has been actively engaged in farming operations? How should the analysis then differ, where business property relief is also in point?...

Follow the link below to download the presentation. Contents Updates to APR/BPR Transfer between spouses Reasons asset targeting falls short APR/BPR trust clause Funding the trust Case study Case study solution Anti‑fragmentation Administration checklist Client communications Pitfalls and risks Summary These PowerPoint slides are designed as a foundation for a training session on Agricultural and Business Property Relief for the relevant fee earners. The presenter can tailor them—by trimming or expanding the points—to match the audience. How to use these slides Allow around two minutes per slide, and use the case study for a 20‑minute breakout. If more depth is required, the content can be delivered over two or three separate training sessions. Further reading Autumn Budget 2024—Private Client analysis Hot topic—the reform of business property relief and agricultural property relief Change in the approach to IHT planning for farmers Tax—Finance Act 2026...

FORTHCOMING CHANGE : In the inaugural Budget of the new Labour administration on 30 October 2024, the Chancellor of the Exchequer, Rachel Reeves, announced that the currently unlimited 100% rate of APR will be restricted to the first £1m of value, taking into account the value of business property relief held by the taxpayer and which is also eligible for 100% relief. This change is expected to take effect on 6 April 2026...

FORTHCOMING CHANGE : In the 30 October 2024 Budget (Autumn Budget 2024), the Chancellor of the Exchequer revealed that the existing 100% inheritance tax relief available for qualifying agricultural property will be capped at the first £1m of value, with anything above that level benefiting from only 50% relief. On 23 December 2025, the government unexpectedly confirmed that the 100% relief ceiling would instead be set at £2.5m in total, replacing the earlier £1m proposal. Where the taxpayer, or their estate, also holds assets that qualify for business property relief, the value of those assets will be aggregated when determining whether the £2.5m limit has been surpassed for the purposes of the relief calculation overall. These measures will apply to deaths occurring on or after 6 April 2026, and to lifetime gifts made on or after 30 October 2024 if the donor dies on or after 6 April 2026. See: Autumn Budget 2024—Private Client analysis...

FORTHCOMING CHANGE: At Autumn Budget 2024 on 30 October 2024, alterations to Agricultural Property Relief were announced, under which the 100% rate of relief will be restricted from April 2026. From that date, it will no longer apply to the entire value of qualifying agricultural property, but instead only to the first £1m of value. The portion of agricultural property above £1m will attract only 50% BPR. Any property which qualifies for business property relief (BPR) will need to be brought into account when assessing whether the £1m threshold is exceeded. For information on these changes, including draft legislation published with Autumn Budget 2024, see: Autumn Budget 2024 (paras 2.51 and 5.54), (para 2.12) and OOTLAR (para 2.12) and Autumn Budget 2024—Private Client analysis. 1 Legacy of qualifying agricultural property on discretionary trust 1.1 In this clause 1, ‘Qualifying Agricultural Property’ means any property whose agricultural value is treated as reduced by 100% by virtue of the property being agricultural property, through the application of sections...

This note offers general guidance on agricultural property relief (APR) from inheritance tax (IHT) applying on or after 6 April 2026, for non-legal professionals preparing a Will, and for personal representatives, trustees and beneficiaries of estates or trusts that include agricultural property. Your Private Client practitioner can provide tailored advice to suit your circumstances. As widely reported, the government has introduced changes to how IHT is charged on farms and agricultural property from April 2026 by amending agricultural property relief (APR). Comparable changes limit the IHT relief for business property by restricting business property relief (BPR). These reforms take effect mainly from 6 April 2026, though certain gifts or transfers to trusts made since 30 October 2024 are also within scope. This guide is intended to help you grasp what APR is and when it might be claimed. The availability of APR in differing situations is complex, and this guide provides only a brief overview. Please speak to your Private Client practitioner for more detailed guidance...

FORTHCOMING CHANGE: Potential changes to Wills Act 1837 The Law Commission’s review of Wills issued its final report on 16 May 2025, with Volume II containing a draft Bill intended to replace the Wills Act 1837. For information on these changes, and the published draft legislation, see Practice Note: Hot topic—modernising Wills and Modernising wills: Final Report Volume II: draft Bill for a new Wills Act. STOP PRESS: Abolition of non-dom regime and introduction of residence-based IHT regime. Finance Act 2025 (FA 2025), which received Royal Assent on 20 March 2025, implements legislation abolishing the remittance basis of taxation and introducing a residence-based regime, commencing on 6 April 2025. FA 2025 also replaces domicile as the key factor in establishing liability to inheritance tax. Other changes include amendment of the rules determining excluded property status, the abolition of protected settlements status of offshore trusts, and changes to overseas workday relief. For information on these changes, see Practice Notes: The abolition of the remittance basis of taxation from...