Agricultural Property Relief (APR) and Business Property Relief (BPR) are both ways of passing on assets without needing to pay Inheritance Tax (IHT). The reliefs can currently achieve up to a 100% tax saving, meaning assets that fall into these categories – such as family businesses, AIM shares, agricultural land and farm buildings – can be passed on to children tax-free.
The prospect of a reform to Agricultural Property Relief, an inheritance tax relief which is incredibly valuable for farmers and landowners, has long been expected.
So far it hasn’t happened, but with the Treasury under increasing pressure to recover some of the huge spends dealing with the effect of coronavirus, it is becoming more likely that the relief will be changed or incorporated into a more general Business Property Relief. Politically it is seen as more “acceptable” to tax those who the general public see as wealthy landowners rather than increasing taxes on income.
With all this in mind, it’s a good idea to review your circumstances now to ensure you make the most of the reliefs while they’re still available.
In these uncertain times it’s best to prepare in any way possible, and getting ahead of the curve now will pay off in the long run should APR and BPR reliefs be reduced. Call our Agricultural Team on 0800 533 5349 or email email@example.com.