The Government has announced changes to the Agricultural and
Business Property Relief reforms (known as APR and BPR), due to
be introduced in April 2026. The threshold will be increased from
£1m to £2.5m, enabling spouses or civil partners to pass on up to
£5m in qualifying agricultural or business assets between them
before paying inheritance tax, on top of existing
allowances.
Chair of the EFRA Committee, MP, said:
“This is a major concession from the Government and should be
welcomed as such. After a tough year, farmers and their
supporters finally have a reason to give cheers this Christmas.
“I am proud of the role that the EFRA Committee has played in
providing scrutiny to the Government and a voice for those
impacted by these proposals. We have maintained the pressure on
Government through our unanimous report calling for the tax
changes to be paused, our questions to ministers over the past
year, and most recently, reminding the Prime Minister of the
intolerable pressures that farmers were under during the Liaison
Committee session last week.
“The lesson here surely must be that the Government should listen
to farmers and the wider rural community across the piece on the
issues that matter to us. The Government could have saved
themselves a lot of time and heartache if they had started with
an approach based on respect and genuine engagement. Whether it
is on the farm tax, on support payments, regulation or future
trading arrangements, the Government will have a better time
politically – and in terms of outcomes – if they engage more and
dictate less.
“Farmers need clarity, stability and a system that genuinely
works for them. If the Government is serious about supporting
domestic food production and the long-term future of our rural
communities, that will be the Prime Minister's New Years
resolution for 2026.”
