Q&A: What if the next government abolishes APR for landlords?

Eagle eyed readers of The Times will have noticed an article on 28 September reporting that Labour would ‘close tax loopholes to fund election pledges’. The article makes clear that agricultural property relief (APR) for landlords may be a particular focus.

Pausing there for a disclaimer. With about a year to run before the next election there are going to be lots of rumours and speculation about tax policy changes between now and then. Most of it won’t play out into hard policies. But let’s play ‘what if?’ and think through what such a change might mean for landowners.

There is no hint that relief for in-hand farmers is going to be abolished or reduced. So we are focused on the availability of relief for agricultural landlords – where for lettings post 1995 100% relief is a possibility with 50% in other cases (see IHTA 1984 ...