The Chancellor’s Budget 2025 announcement that the 100% allowance for APR/BPR assets will be transferable between spouses is welcome news ahead of the upcoming changes to inheritance tax in April 2026.
It does not go far enough in my opinion, and the changes will impact a large number of farming businesses. ‘The country needs stability and security for its economy, ‘ were the words of the Chancellor. The changes coming in from April 2026 will provide us with neither. Food security does not appear to be included within this, and when farms are struggling to make a living as a result of subsidies being removed and weather conditions impacting yields, I would understand why some may be considering their options for the future.
The Chancellor was unlikely to change her stance on the changes for inheritance tax following the work the NFU have been undertaking on behalf of its members. However, there has not been any headline announcement on changes to holdover relief, and there may be opportunities for minimising the impact of the changes.
As always, if you would like to understand how the 2025 Budget may affect your farming business or wider agricultural operations, our team is here to help. Craig Weavers, Lambert Chapman Partner and agricultural specialist, can provide clear, practical advice to support your planning and ensure you are well-positioned for the year ahead. Please get in touch to discuss your circumstances and the opportunities available to you.
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The views expressed in this article are the personal views of the Author and other professionals may express different views. They may not be the views of Lambert Chapman LLP. The material in the article cannot and should not be considered as exhaustive. Professional advice should be sought in connection with any of the issues contained in the article and the implementation of any actions.