Agricultural and business property reliefs cut

Several changes were made to inheritance tax reliefs in the Budget although the chancellor confirmed that the nil-rate band and residence nil-rate band will remain fixed at their current levels until 5 April 2030.

From 6 April 2026 the first £1m combined agricultural and business property will continue to qualify for agricultural property relief and business property relief at 100%. However the rate of relief will drop to 50% thereafter and in all circumstances for quoted shares designated as ‘not listed’ on the markets of recognised stock exchanges such as AIM.

The scope of agricultural property relief will be extended from 6 April 2025 to land managed under an environmental agreement with or on behalf of the UK government devolved governments public bodies local authorities or approved responsible bodies.

Gemma Hedges director at HWB Chartered Accountants...