APR & BPR Changes? Policy Paper Published
4th August 2025
Set in Stone… or at least, paper.
On 21st July 2025 the government published the long-awaited policy paper on changes to Inheritance Tax Agricultural Property Relief (APR) and Business Property Relief (BPR) following the Autumn 2024 Budget.
Despite much lobbying from farmers, professionals and industry leaders, and indeed a lot of wishful thinking, there has essentially been no change in what was announced.
The new £1million allowance remains, it is not transferrable between spouses, and neither is there any mechanism for exemption if the property is retained in the family. There is a slight nugget of hope that the limit may increase with CPI (consumer prices index) from 2030 but this will be dependent on the government at the time. Meanwhile from 2026 to 2030 there will be 4 years of fiscal drag effectively reducing the value of the £1m allowance.
Some have already started IHT planning to mitigate the effects of the new legislation. Some may have delayed planning in the hope of changes, but one thing is now abundantly clear, if you’re yet to seek advice, the time is now.
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