Changes to agricultural property relief and business property relief

This measure makes changes to the reliefs, as follows:

• a new £2.5 million allowance will apply to the combined value of property in an estate qualifying for 100% business property relief or 100% agricultural property relief or both — relief at the lower rate of 50% will apply to the value of any qualifying relievable property over £2.5 million

• any unused amount of the new £2.5 million allowance can be transferred to a surviving spouse or civil partner

• the rate of business property relief available will be reduced from 100% to 50% in all circumstances for shares admitted to trading on recognised stock exchanges designated as ‘not listed’

• the option to pay Inheritance Tax by equal annual instalments over 10 years interest-free will be extended to all property which is eligible for agricultural property relief or business property relief

• a £2.5 million allowance will also apply to the combined value of relievable agricultural and business property in trusts

These will take effect from 6 April 2026.