Rules changed from 6 April 2026
Business and Agricultural Relief
Qualifying agricultural and business property now shares a £2.5 million allowance for 100% relief, with 50% relief generally applying above it.
General education, not personal financial, legal or tax advice.
Combined 100% Agricultural Relief and Business Relief allowance for qualifying property on deaths from 6 April 2026.
How the new cap works
The allowance applies across qualifying agricultural and business property, including relevant lifetime gifts and trust interests. Once the 100% allowance is used, further qualifying value that would otherwise receive 100% relief generally receives 50% relief.
Transfer between spouses or civil partners
Unused allowance from a predeceased spouse or civil partner may be transferable, potentially increasing the available 100% allowance to £5 million. A claim and supporting facts are required.
Qualification still comes first
The cap does not make every company, portfolio or rural property eligible. Ownership periods, trading activity, occupation, asset type and exclusions remain central. Shares listed on certain non-recognised markets, including qualifying AIM shares, have separate 50% treatment under the post-2026 rules.
Relieved assets can affect other calculations, including residence nil-rate band tapering. Do not assume that a 100% relief claim makes an asset irrelevant everywhere else.
Direct answers
Frequently asked questions
Do all businesses qualify for Business Relief?
No. The activity, ownership period, asset type and any excluded investment activity must be tested against the statutory conditions.
What changed for business and agricultural relief in April 2026?
A combined £2.5 million allowance applies to qualifying business and agricultural property at the 100% relief rate, with 50% relief generally applying above that allowance.