As we approach the end 2025, we finally have some welcome news from HM Treasury. An announcement made this morning confirms an increase in the 100% agricultural and business property relief from £1 million to £2.5million per person. Any unused £2.5 million allowance on the death of a spouse or civil partner is transferable to a surviving spouse or civil partner. This makes it like the nil-rate band.
To view the changes to the agricultural property relief, please click here.
The increase in the allowance will provide additional inheritance tax relief of up to £300,000 per person, with an additional £1.5 million of assets receiving the full 100% relief rather than 50%.
Many of you have already reviewed your inheritance tax position and taken steps to reduce the impact of a substantial tax charge on death. Planning for succession is a positive move for your farm or business, the increase in allowance will give some added flexibility when making the decision on when and how to pass assets on.
If you would like to discuss any of this with the team, please get in touch.
