UK Treasury announced reforms to agricultural property relief and business property relief from inheritance tax at autumn budget 2024; summary of reforms issued.
Confirmed that government will extend the existing scope of agricultural property relief from Apr. 6, 2025 to land managed under environmental agreement with, or on behalf of, the UK Treasury, devolved governments, public bodies, local authorities, etc.
Also announced reform of agricultural/business property relief from Apr. 6, 2026.
Relief of up to 100% currently available on qualifying business and agricultural assets.
In addition to current nil-rate bands and exemptions, a 100% relief will apply to the first £1 million of agricultural and business property, followed by a 50% rate.
UK Treasury will also reduce business property relief from 100% to 50% for shares classified as not listed on recognized stock exchange markets, such as AIM.
