IHT & Farms - The Latest Update & Guidance

Introduction

The dust had settled on the Autumn Budget and the slashing of IHT relief to 50% from April 2026 after £1million allowance at 100% with the allowance transferable between spouses and then, just before Christmas, there was a dramatic u-turn to £2.5million. Individuals who died before 6 April 2026 will be entitled to an additional £2.5million allowance from a spouse. The need for full farm succession planning is now a reality and previous succession planning needs updating.

There will be potential increased IHT liabilities which will need full farm succession planning.

With “mansions tax” disposal of the large farmhouse that is vulnerable to IHT can be downsized and thus achieve more IHT relief as part of the considerations.

Lifetime transfers are the hot subject but future CGT liabilities will have to be considered, as will funding, which could be through sales of farm properties. There has to be meticulous planning and consideration on the interaction of CGT and IHT.

What You Will Learn

This live and interactive course will cover the following:

• Using the £2.5 million allowances to maximise 100% BPR/APR relief - own and spousal
• The need for full updated farm succession planning with focus on spouses and 50%
• The need for updating farm wills and partnership agreements (Maile and Merryman)
• Maximising areas of potential 100% relief - checking partnership property
• Focus on the risks of holding investments as opposed to trading - 0% BPR (Tanner, Butler and Kingsworthy Meadow Fisheries)
• AHA tenancy - still 50% APR - therefore under threat now?
• Partnership property - still 50% BPR but with spousal transfer more chance of 100%
• Lifetime gifting for IHT saving - holdover relief remains - the need to understand CGT including rollover relief and GROB - new Chugtai case
• Has there been too much lifetime gifting post the u-turn on 23 December 2025?
• The importance of current and future farm values for planning and probate
• Funding the future IHT liabilities - the “hit list” and the farmhouse - downsizing - where is this after the £2.5million u-turn?
• Rethinking woodland relief and heritage property importance
• The impact on potential development land values and sales

Recording of live sessions: Soon after the Learn Live session has taken place you will be able to go back and access the recording - should you wish to revisit the material discussed.