APR Relief Rates
| Asset type | APR rate |
|---|---|
| Owner-occupied farmland | 100% |
| Farm tenancies from Sept 1995 | 100% |
| Pre-1995 farm tenancies | 50% |
| Farmhouses (occupied by farmer) | 100% (if character appropriate) |
| Farm buildings | 100% |
⚠️ Important October 2024 change: From April 2026, APR and BPR combined will be capped at £1,000,000 per person. Above £1m, relief reduces to 50%. Estates relying on full APR/BPR for large land holdings need urgent planning review.
Qualifying Conditions
- Ownership period: 2 years if owner-occupied; 7 years if tenanted
- Character appropriate: Farmhouses must be of a character appropriate to the farm — not disproportionately large or primarily residential in use
- Agricultural use: Property must be used for agricultural purposes at the time of transfer
Agricultural Value vs Market Value
APR applies only to the agricultural value of the property — not its full market value. If a farm has development potential or other non-agricultural value, only the agricultural element receives relief. The excess (often significant for land near towns) may be taxable at 40%.
Planning Ahead
With the new £1m cap from April 2026, farming families with estates above this level need to review their succession planning urgently. Options include accelerating gifts, restructuring ownership, and using nil-rate bands more efficiently through Will planning.
Sources & references
Authoritative UK government, HMRC, statute and Citizens Advice sources. Last reviewed: 31 May 2026.
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