The budget in October 2024 announced some drastic restrictions to the reliefs available for farming and trading businesses, namely restricting the IHT exemption to £1m per estate and restricting the ability to leave these assets to spouses in your will. 

We are pleased to see HMRC have now confirmed changes to these proposals, which will be welcomed by those affected. These changes are due to come into force from April 2026 in place of the upcoming changes announced back in October 2024. 

Relief Threshold Doubled from April 2026 

The government has increased the 100% Agricultural & Business Property Relief threshold from £1 million to £2.5 million per individual, effective 6 April 2026. 

A married couple or civil partners can now pass up to £5 million in qualifying farming or business assets, on top of existing allowances like the nil-rate bands. 

Why This Matters to You 

• The number of estates impacted by the reforms is reduced by half, from 375 to 185 estates in 2026‑27. 
• Around 85% of estates currently claiming agricultural relief will now enjoy no additional inheritance tax. 
• Even beyond that £2.5m threshold, 50% relief still applies to qualifying assets over and above the threshold, minimising the overall tax burden. 

How We Can Help 

• Tailored estate planning strategies to secure maximum relief. 
• Advice on ensuring that your farming or trading business qualifies for relief. Both   definitions have qualifying criteria that have to be satisfied, and it may be that small changes made now ensure you qualify in the future. 
• Advice on managing inheritance taxable estates, whether £2.5m or above. 

‍

Please reach out to your usual Jerroms contact to check how this change could benefit your assets and ensure you are fully aligned with the new rules.