At a Glance: APR & BPR Changes
- APR and BPR now capped at £2.5m per person (or £5m for couples)
- From April 2026, machinery, livestock and trading assets must be fully valued for IHT
- Many farms will face higher Inheritance Tax exposure
- Accurate, date‑specific valuations are essential to support any relief claim
- Early planning helps families stay within relief thresholds and avoid unexpected tax bills
- Farm & Country Finance can assist with guidance and help with farm finance restructuring
The rules have changed — and so must your planning
The October 2024 Budget brought in the biggest shake‑up to Agricultural Property Relief (APR) and Business Property Relief (BPR) in a generation. For farms and rural estates, the days of assuming 100% relief on agricultural and business assets are over.
With relief now capped at £2.5 million per person (or £5 million for couples, following the December 2025 announcement), some larger family farms and estates will face a far higher Inheritance Tax (IHT) exposure than before. And from April 2026, probate and IHT valuations must include the full value of machinery, livestock and trading assets — items that previously slipped under the radar thanks to full BPR.
In short: machinery and livestock could now tip an estate over the relief threshold, making accurate valuations absolutely essential in conjunction with possible farm finance restructuring.
Why machinery and livestock valuations now matter
Unlike land, which tends to hold or increase in value, machinery and livestock fluctuate. They depreciate, they change hands, and their numbers rise and fall throughout the farming year. Under the new rules, these assets can no longer be treated as an afterthought.
Key reasons accurate valuations are now critical:
- APR/BPR caps mean more estates exceed the relief limit
- Machinery and livestock often represent a large share of a farm’s trading value
- HMRC will expect defensible, date‑specific valuations
- Outdated or informal estimates risk unexpected IHT bills
- Reconstructing stock numbers months or years later is almost impossible
A proper valuation gives families a clear, defensible snapshot of the business at the date of death — essential for any IHT claim.
Planning ahead: what farmers should consider
With the new APR/BPR regime, estate planning needs a fresh look. Accurate valuations can help families:
- Restructure holdings to separate land and trading assets
- Transfer machinery or livestock during lifetime, where appropriate
- Use trusts or gifting strategies (with care around CGT and other tax implications)
- Understand whether their estate is likely to exceed the £1m/£2m cap
The message is simple: don’t leave valuations until the last minute. The earlier you understand your asset position, the more options you have to plan and restructure farm finance.
How can Farm & Country Finance help?
Since the turn of the century, Farm & Country Finance has been arranging farm finance, farm remortgages and farm loans for any legal purpose. If you’re considering restructuring your farm finance, we’re here to make that process as straightforward as possible.
Alongside exploring your finance options, we can guide you on choosing valuers and navigating the legal process. You may need a valuer to assess assets beyond land and buildings — including plant, machinery and livestock. Valuers should be suitably qualified, giving families confidence that their valuation is robust, compliant and defensible.
Farm & Country Finance – At a Glance
- Specialist brokers in farm finance across the UK
- Established in 2000, with decades of experience
- Finance available for any rural property: farms, smallholdings, land with or without buildings, equestrian properties, caravan parks, nurseries, garden centres, fisheries
- Finance available for any legal purpose including debt consolidation, overdraft repayment, refinancing, working capital, diversification and startups
- Independent access to reliable and proven lenders with personal, partner‑led service
- Solutions tailored for both short‑term bridging finance and long‑term mortgages (5–30 years)
- Covering England, Wales, Scotland, and with a funder in Northern Ireland
- Income from any source considered, including projected income
- Flexible where existing bank relationships are strained or other difficulties
Call us today for expert help and a free consultation on your farm finance options.
Here are the types of farm finance we arrange:
- Farm remortgages
- Farm loans
- Farming loans
- Farm restructuring loans
- Land remortgages / remortgages for land
- Land loans
- Farm bridging loans / farm bridging finance
- Agricultural mortgages
- Agricultural remortgages
- Agricultural loans
Final word
Farm finance restructuring may be essential to protect the next generation.