Glossary · UK
What is Agricultural Property Relief (APR)?
An Inheritance Tax relief reducing the agricultural value of qualifying farmland and farm buildings by 50% or 100%.
Full Definition
Agricultural Property Relief (APR) reduces the agricultural value of qualifying farmland, pasture, farmhouses and farm buildings for Inheritance Tax, on death and on lifetime gifts. Relief is normally 100% where the transferor farmed the land themselves or let it on a tenancy beginning on or after 1 September 1995, and 50% in certain older let situations. The property must have been owned and occupied for agricultural purposes for at least two years if farmed by the owner, or owned for seven years if let. APR applies only to the agricultural value, which may be less than market value where land has development or amenity value; Business Property Relief may then cover part of the excess. From 6 April 2026 APR is being reformed alongside BPR: a single combined 1 million allowance covers property qualifying for 100% APR and 100% BPR, with value above the allowance receiving 50% relief rather than 100%. From 6 April 2026 the scope of APR is also extended to certain environmental land management agreements. Farmhouses qualify only if of a character appropriate to the land and occupied for agriculture. These rules make APR central to succession planning for farming families, and the 2026 reforms have prompted many to review their arrangements.