My parent died on 1 April 2026. Do the new rules apply?
No. Deaths before 6 April 2026 are subject to the old rules — 100% APR/BPR with no cap. The new rules only apply to deaths on or after 6 April 2026.
Agricultural & Business Property Relief Changes 2026 | ProbateHelp
APR and BPR changed on 6 April 2026. The combined 100% relief allowance is £2.5m per person, with unused allowance transferable between spouses and civil partners.
This guide is part of ProbateHelp's Inheritance Tax guide cluster. Estimated reading time: 15 min.
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Frequently asked questions
My father died in 2020 and left his farm to my mother. She is now ill. Will the new rules apply to her estate?
Yes, if your mother dies on or after 6 April 2026, the new rules will apply to her estate. However, because your father died before 6 April 2026, it is assumed he had a full £2.5 million allowance to transfer. Your mother's estate will therefore benefit from a combined £5 million APR/BPR allowance.
Does the £2.5 million allowance stack on top of the nil-rate band?
Yes. The APR/BPR allowance is separate from the £325,000 nil-rate band. GOV.UK's simple married-couple example combines two £2.5 million APR/BPR allowances with two £325,000 nil-rate bands, giving £5.65 million. Do not add the residence nil-rate band automatically: it has separate conditions and starts to taper when the estate exceeds £2 million.
I have a mix of farm assets and business assets. Do I get a separate £2.5 million for each?
No. The £2.5 million is a single combined allowance across all qualifying APR and BPR assets. You cannot have £2.5 million for agricultural assets and a separate £2.5 million for business assets.
What happens if the farm has to be sold to pay the IHT?
The 10-year interest-free instalment option is designed to reduce the risk of forced sales. If the estate elects to pay IHT by instalments, the tax on qualifying APR/BPR property can be spread over 10 years without interest under the new rules.
Are AIM shares still worth holding for IHT purposes?
They are less tax-efficient than before. Under the new rules, AIM shares qualifying for BPR receive only 50% relief — meaning the effective IHT rate on them is 20%, not zero. Whether they remain worthwhile depends on your overall estate and investment objectives. A financial adviser can help you assess this.
Does the £2.5 million allowance apply to lifetime gifts?
Yes, but with important transitional rules. Gifts made on or after 30 October 2024 where the donor dies on or after 6 April 2026 within seven years of making the gift will be subject to the new rules. Gifts made before 30 October 2024 are subject to the old rules.