Article – Five key actions to undertake before April 2026
We are now nearly 12 months on since the Budget in 2024 where we were told that there would be dramatic changes to the amount of APR and BPR relief we would be able to receive in relation to our agricultural and business property. Previously uncapped, these reliefs now offer 100% relief on the first £1 million of qualifying assets and only 50% relief on qualifying agricultural and business assets above that amount. We have in July seen draft legislation that the Revenue are proposing will be utilised to implement this in April 2026.
The question now with only 6 months to go from these proposed changes potentially coming in to force is what key actions we would recommend farmers prioritise between now and then. Here are our top five:
- Have the family discussion about succession planning and try and agree between you the end destination in relation to assets. This will then enable a strategic approach to the transfer of assets in the most tax efficient means. It is unwise to transfer assets without having clarity in relation to the overall succession plan as it can be costly to rectify the position later.
- Check the value of your assets with a chartered surveyor to ensure that the basis of your succession planning is accurate. It is important also to consider the income generation potential of assets and not just their capital value for the purposes of succession planning.
- Obtain and check what the base values of your assets are i.e. the value at which you acquired or inherited that asset as this will be crucial in conversations with your solicitor about transfers you may want to consider doing now.
- Ask your solicitor/accountant to provide you with an IHT calculation as things stand today and how this would differ if certain actions such as transfers of land/assets occurred.
- Design your action plan in collaboration with your advisory team, based on the above, and ensure that it is implemented.
The actions differ widely dependent on the individual and business concern, but these could include updating Wills (or finally getting round to putting one in place!), updating partnership agreements, transferring assets during lifetime or changing the way you own the asset from joint tenants to tenants in common if they are jointly owned, and amending business structures.
As NFU Farmer and Grower Members, you will receive a 12.5% on any advice we provide in relation to succession planning, and it may be possible as well if you subscribe to the Legal Assistance Scheme to utilise the contract checking service and instances of legal advice to assist with costs of document review and overall planning. Please contact us for more information.
Written by Cathryn Brown, Solicitor based in our Newcastle Emlyn Office.
Original article published in the October 2025 edition of Farming Wales magazine by NFU Cymru. www.nfu-cymru.org.uk