The government has announced that the proposed cap to the 100% rates of Agricultural Property Relief (APR) and Business Property Relief (BPR), which is due to apply from 6 April 2026, will be increased to £2.5 million from the £1 million previously announced.

The revised measure means that from 6 April 2026, individuals will be able to pass on £2.5 million of qualifying agricultural and business assets without attracting IHT.

This is the second recent significant amendment to the proposed IHT reforms, which were first announced in the 2024 Autumn Budget. The initial policy did not permit any unused allowance on death to be transferred between spouses or civil partners. However, this position changed in the 2025 Autumn Budget when it was announced that the new allowance would be transferable.

These changes together mean spouses and civil partners will potentially be able to pass on, combined, £5 million of qualifying agricultural and business assets free of tax