Sarah Wray writes for Professional Adviser on the inheritance tax consultation on agricultural and business property relief
min readThe government recently released its consultation on proposed reforms to Agricultural and Business Property Relief (APR and BPR) from Inheritance Tax (IHT) set to take effect from 6 April 2026.
The consultation, open for two months, offered some positive developments from the Budget announcements. However, there are areas of increased complexity, which rows against broader policy aims to simplify tax.
In an article for Professional Adviser, Sarah Wray, Senior Associate, analyses the positives and sheds some light on areas for improvement.
She concludes that the consultation represented a mixed bag. The refreshing of the £1m allowance and extension of the interest-free instalment options are positive stops. But the intricate new trust rules and the refusal to allow spousal transfers seem unnecessarily complex for the tax at stake.
The policy structure of restricting 100% relief to £1m was always going to introduce further complexity when compared with the current regime. However, there are clear opportunities to mitigate the impact of this complication which have not been taken under the proposed reforms.
Read the full article in Professional Adviser here.
