Getting farm assets ready for the new inheritance tax rules

Changes to Agricultural Property Relief (APR) and Business Property Relief (BPR) from 6 April 2026 mean that valuations are likely to play a much greater role when calculating inheritance tax (IHT) on farming estates. With more assets potentially falling outside the scope of full relief, accurate valuations and good record-keeping are increasingly important.

Jeanette Dennis, Partner at Ashtons Legal, highlights the importance of having a clear, written partnership agreement. This should record what has been agreed between partners and identify ownership of valuable assets. Partnership terms can now have a direct impact on how assets are valued, particularly where restrictions on selling partnership assets without the consent of the other partners could affect their market value.

Jeanette also warns that changes in land use can affect both the value of land and its eligibility for APR. Informal arrangements, energy crops and solar panels are examples of changes that may take land out of agricultural use and potentially affect the relief available.

Senior Associate, Natalie Westgate, emphasises the importance of establishing exactly who owns each asset and ensuring that land ownership is properly documented. Registering unregistered land and making sure deeds and other key documents are easily accessible can save significant time and uncertainty for families and advisers following a death.

With the new IHT rules increasing the importance of detailed valuations, farmers and landowners should consider reviewing their ownership structures, partnership agreements, land use arrangements and documentation now. Early preparation can make the valuation process considerably easier and help families understand their potential IHT position.

Read the full article on the Farmer’s Weekly website: Why valuation preparation is key under new IHT relief regime.

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