The Government has announced that the £1m Agricultural and Business Property Reliefs threshold has been increased to £2.5m from April 2026, allowing spouses or civil partners to pass on up to £5m in qualifying business or agricultural assets between them.
The government has said that they have considered feedback following from the business and agricultural community, and this is good news for Northern Irish SMEs, significantly reducing the number of family farms and businesses subject to higher inheritance bills.
As a result of the announcement, the upcoming amendment to the Finance Bill 2025 will include:
- An increase to the threshold at which 100% Agricultural Property Relief and Business Property Relief applies from £1 million to £2.5 million per estate, with 50% relief continuing to apply to qualifying assets above that level.
- As the allowance will be transferable between spouses, a surviving spouse or civil partner will be able to pass on up to £5 million of qualifying agricultural and business assets tax-free, on top of existing nil‑rate bands. This will apply to people who are widowed and have lost spouses or civil partners before the policy was introduced.
These changes will be of relevance to a number of our members across the industry, and we will follow on with more analysis of the implications in the New Year.