Agricultural property relief
Last reviewed 18 August 2026
The relief that keeps farms in the family faces the same reckoning as its business cousin: still valuable, but no longer without limit.
What qualifies
Agricultural Relief can reduce the inheritance-tax value of qualifying agricultural property — farmland, and farmhouses of a character appropriate to the land — by up to 100%, provided the ownership and occupation conditions are met. Like Business Relief, it exists to stop working farms being sold to pay tax.
The shared 2026 cap
From 6 April 2026, 100% relief on agricultural and business property together is capped at £2.5 million per person (Finance Act 2026); above the cap, relief drops to 50%, an effective 20% rate. Because the allowance is shared with Business Relief, estates holding both must plan across the two. The conditions are technical — a matter for specialist advice.
Questions
Is farmland free of inheritance tax?+
Is the cap shared with business relief?+
Sources. GOV.UK, Agricultural Relief for Inheritance Tax; Finance Act 2026 (combined £2.5m cap from 6 April 2026).