Farm Succession Tax Planning: APR, BPR and the New £1m Cap
Agricultural Property Relief is often treated as a silver bullet for farm succession, but rising land values, strict usage tests, and upcoming caps mean many estates remain exposed to heavy Inheritance Tax bills. Here is what actually works.
Can I claim capital allowances on new machinery, tractors, and farm buildings?
Yes. The Annual Investment Allowance (AIA) and Full Expensing rules allow farming businesses to deduct 100% of the cost of qualifying plant and machinery against taxable profits in the year of purchase.
How can we protect our farm from Inheritance Tax during succession planning?
Agricultural Property Relief (APR) and Business Property Relief (BPR) can provide up to 100% relief from Inheritance Tax on qualified farmland, farmhouses, and agricultural buildings. We help structure ownership and tenancy agreements to ensure these crucial reliefs are fully protected.
How does farm profit averaging work to reduce my tax bill?
Farmers and market gardeners can elect to average their profits over a two-year or five-year period if profits fluctuate significantly. This evens out high and low income years, potentially moving you into lower tax brackets and reclaiming overpaid tax.
Agriculture
Our dedicated agricultural accounting team works alongside family farms, agribusinesses, landed estates, and agricultural contractors across the UK.
