Agriculture6 min read

Agricultural Property Relief: 100% IHT Relief on the Family Farm

By ACJ Financial Planning

APR can wipe out IHT yet strict occupation rules catch many family farms unaware.

Qualifying assets

Land, farmhouses and buildings used for agriculture often qualify for 100% APR if owned > 2 years (or 7 years if let).

Traditional farmhouse eligible for Agricultural Property Relief

Residence vs. character test

HMRC considers whether the farmhouse is "character appropriate" to the holding – luxury refurbishments can jeopardise relief.

Succession planning actions

  • Maintain up-to-date tenancy agreements.
  • Keep business accounts showing active farming.
  • Use partnership/LLP structures to secure both APR and BPR.
Tractor working the land demonstrating active farming for APR

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