By Lindsey Nolan, Senior Associate and Andrew Langbridge, Solicitor
In last year’s budget, Chancellor Rachel Reeves announced that from 6 April 2026 100% agricultural and business property relief will be capped at £1,000,000 per person. In this week’s budget, the Chancellor announced that this £1,000,000 allowance will be transferrable between spouses and civil partners in much the same way as the nil rate band and residence nil rate band.
Impact on Farming Families
This week’s announcement will bring comfort to farmers who are married or in civil partnerships, many of whom may not own farm assets equally. It will also bring comfort to farmers who are widows, widowers or surviving civil partners, who will be able to claim their late spouse or civil partner’s £1,000,000 allowance even if they died before 6 April 2026.
What still needs careful consideration
Whilst this week’s announcement was a welcome development, it should not be forgotten that from 6 April 2026 agricultural and business property relief will be less beneficial than it is now. For this reason, good estate planning advice is as important now as it has always been. Particularly so for those farmers with farms worth more than £3,000,000 and those who are single or cohabiting, farming alongside other family members other than spouses, for whom this week’s announcement will make no difference.
How Goughs can help
With these changes to agricultural and business property relief on the horizon, now is a sensible time to review your estate plans. The new £1,000,000 cap, even with the ability to transfer unused allowances between spouses or civil partners, may affect the structure and timing of future decisions.
If you would like clarity on how the reforms apply to your circumstances, we can help you assess your options and ensure your planning remains robust and effective.
Post-Budget Briefing
Why not join us at our exclusive ‘Post Budget Briefing?’
- To be hosted alongside Fidelius Financial Advisors and Pearson May Accountants
- Wednesday 7th January 2026, from 6pm
- At the beautiful Hartham Park Estate, Corsham
- BOOK NOW