Telmar Estate Planning

Business & Agricultural Relief

Reduce your Inheritance Tax. Protect what you've built.

Business & Agricultural Reliefs (BPR & APR) can significantly reduce the value of your estate for IHT purposes, helping you protect your business, farm and legacy for future generations.

Family business and farmland protected by business and agricultural relief
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Why Use Business & Agricultural Relief?

Reduce IHT Liability

Potentially reduce the value of qualifying assets by 50% or 100% for IHT purposes.

Protect Your Legacy

Ensure more of your business or farm is passed to your loved ones, not the taxman.

Support Your Business

Keep your business or farm strong and secure for future generations.

Plan With Confidence

Effective planning today provides peace of mind for tomorrow.

Expert Guidance

Specialist advice to help you qualify and claim the reliefs you deserve.

Understanding the Reliefs

  • Agricultural Property Relief (APR) — reduces the value of qualifying agricultural property by 50% or 100%
  • Applies to farmland, farmhouses and farm buildings
  • Must have been used for agricultural purposes; ownership and occupation conditions apply
  • Business Property Relief (BPR) — reduces the value of qualifying business assets by 50% or 100%
  • Applies to shares in unquoted trading companies, sole traders, partnerships and certain AIM shares
  • Must meet specific trading and ownership conditions
Adviser explaining business and agricultural property relief

What Can Qualify?

A wide range of assets may qualify for BPR or APR, subject to eligibility.

Farms & Farmland

Working farms and qualifying agricultural land.

Farmhouses & Buildings

Properties used as part of an active farming business.

Shares in Trading Companies

Unquoted trading company shares held for two years.

Sole Trader Businesses

Qualifying assets used in an unincorporated business.

Partnerships

Interests in qualifying trading partnerships.

AIM Listed Shares

Many AIM-listed shares qualify after a two-year holding period.

How We Help

Qualifying Review

Detailed review of whether your assets qualify for BR or APR.

Trading vs Investment

Ensure trading activity is sufficient — investment companies don't qualify.

Mixed-Use Businesses

Plan ownership structures where part of the business may not qualify.

Farm & Landowner Planning

Structure ownership, tenancies and diversification to preserve APR.

Succession Planning

Plan the transition to the next generation tax-efficiently.

Two-Year Rule

Plan ahead — qualifying assets generally need to be held for two years.

Check Your Eligibility

Expert Guidance

Business and Agricultural Property Relief Explained

What BPR and APR cover

Business Property Relief reduces inheritance tax on qualifying trading businesses, unquoted shares and certain business assets held for at least two years. Agricultural Property Relief applies to the agricultural value of farmland and farm buildings occupied for farming. Investment businesses, such as property letting, generally do not qualify. Correctly structuring ownership and trading activity is essential to secure these reliefs. HMRC examines whether a business is mainly trading or mainly holding investments, so mixed businesses such as farms with holiday lets need careful review. Excess cash held in a company can also restrict relief.

The April 2026 changes

From 6 April 2026, 100% relief applies only to the first £2.5 million of combined qualifying business and agricultural property per person, with 50% relief above that, creating an effective 20% tax rate on the excess. Unused allowances can transfer between spouses. Shares on AIM and similar markets now qualify for 50% relief only. Inheritance tax on relieved assets can often be paid in instalments. These reforms mean many family businesses and farms that were previously fully protected may now face an inheritance tax liability, making early valuation, cash flow modelling and succession planning more important than ever.

Planning for business owners and farmers

Families with valuable businesses or farms should review Wills, partnership and shareholder agreements, lifetime gifting of shares or land, and insurance in trust to fund any new liability. Gifts made now can use the seven-year rule. Telmar works alongside your accountant and land agent to protect business and farming assets for the next generation under the current rules. We also consider the practical needs of the next generation, including fairness between farming and non-farming children, so the business remains viable and family relationships are protected long into the future.

How We Work

Our Proven Approach

1

Understand Your Situation

We get to know you, your assets and your goals.

2

Assess Eligibility

We review your assets and business/farm structure to assess eligibility.

3

Strategic Planning

We create a tailored plan to maximise BPR & APR opportunities.

4

Implement Solutions

We help you implement the plan to secure the reliefs.

5

Ongoing Support

We provide ongoing advice to ensure continued compliance and effectiveness.

6

Review & Adapt

We review your plan regularly to keep it aligned with your circumstances.

Get Expert Advice Today

Speak to our inheritance tax specialists to see how Business & Agricultural Relief could reduce your IHT liability and protect your legacy.

  • 01329 550190
  • admin@telmarestateplanning.co.uk
  • 9 Pier Street, Lee-on-the-Solent, Hampshire, PO13 9LD

Frequently Asked Questions

Your Questions, Answered

BPR reduces the IHT value of qualifying business assets by 50% or 100% after a two-year holding period.
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Ready to Protect Your Future?

Book a consultation today and take the first step towards peace of mind for you and your family.

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