7th January 2026 ❘ Legal News and Commentary
Response to the Government U-turn on APR and BPR allowances
Response to the Government U-turn on APR and BPR allowances
While there is no doubt that the announcement made prior to the festive season has been welcomed by the agricultural and wider business communities, I can’t help but feel extremely frustrated by the whole situation.
For over a year now, farmers, landowners and family businesses have been exposed to extreme levels of stress, anxiety and uncertainty for their future. Those impacted by the change on policy did everything they could through industry groups and professional representatives in order to explain to government officials in detail how the proposed cap on Agricultural Property Relief (APR) and Business Property Relief (BPR) was built on flawed assumptions and incomplete data. Yet ministers pressed ahead, and many of our clients started restructuring on the strength of that policy direction and the numerous affirmations provided by representatives of the Government (including the most recent Budget in November!). Only now, at the eleventh hour, has the Government increased the 100% relief allowance from £1 million to £2.5 million per individual with effect from 6 April 2026.
I share the sector’s frustration that this change comes so late, after months of warnings and evidence were repeatedly set aside and laughed at during debates in the House of Commons. The “course‑correction” helps, but it also underlines how quickly a shift in policy can create chaos where historical tax positions are suddenly uprooted – uncertainty, expense, and avoidable stress.
Despite the shift in position, our message to clients remains the same: it is vital that you understand your business affairs now and put in place considered and informed succession planning. It must be reiterated that Wealth and Succession Planning was always something that agri and business clients should have been undertaking, long before the Government removed the blanket reliefs. The shift in government position just heightened the need as clients became aware of the immediate tax implications. The wider benefits of proper planning remain and so do the potential risks of people not getting to grips with their affairs and their plans for the future.
To put it in simple terms: do not wait. With unlimited 100% APR/BPR gone and the allowance‑based regime starting in April, it is vital to understand your business and personal balance sheets, and to put robust succession plans in place. If clients follow this advice, they will be in a much better position to preserve their personal and family wealth when natural events impact the status quo or when the next shift in government policy comes along.
We can help with this – you can find out more about the Wealth and Succession Planning support we can offer here.