Consultation on APR and BPR closes

PLEASE NOTE: 

This blog post was written and published on the date above, reflecting our understanding of the draft proposals and/or legislation at that time.  For the latest and up-to-date information on the proposed IHT changes to BPR and APR, please refer to our dedicated website hub which can be found here: https://www.burges-salmon.com/thinking/topics/bpr-apr/

The government's consultation on the proposed changes to agricultural property relief and business property relief (APR and BPR) from inheritance tax (IHT) closes today - 23 April 2025. 

For those who wish to seize the last few hours to reply, the details of how to do so can be found on the consultation page which is here.

Will the policy change?

The proposals have been met with much concern from landowners, business owners, industry bodies, and advisors. 

It is fair to say that landowners and farmers have been the most vocal group with wide publicity of various protests either at industry events (tractor horns blaring outside the Oxford Farming Conference in January of this year) or in the political sphere (tractors - and a certain celebrity farmer - parked up in Westminster). 

Though farmers have often caught the news headlines and public sentiment, the changes will be much wider and impact family businesses too. 

Despite the protests, the broad policy seems set and there has been no indication of any u-turn or relaxation of the rules. Instead the consultation seeks to consider some of the more technical points around how the new cap will work - particularly in relation to trusts. 

What happens next?

The government will consider responses and then begin to draft the legislation to bring in the changes. We expect to see the draft legislation late Summer into Autumn - but quite when is anyone's guess. 

For many the next few months will be a period of considering wider options for lifetime gifts and estate planning. Our advice to clients is not to rush. At the moment the only knowledge we have of how the rules might change is the consultation document. Informed decisions will only possible once the draft legislation has been published. 

More information 

We are currently mid-way through a series of articles considering what the changes might mean for landowners and business owners:

1. Introduction and deep-dive on the detail - Consultation on agricultural and business property relief
2. Landowners and family businesses - impact of proposed IHT changes on lifetime gifts
3. Landowners and family businesses - impact of proposed IHT changes to estates on death  
4. Landowners and family businesses – impact of proposed IHT changes to trustees
5. Changes to Related Property Rules and Valuation Issues
6. Paying IHT by instalments 

Burges Salmon has extensive experience advising family businesses and landowners. Our private wealth team can assist with tax advice, estate planning, family advice, corporate advice, and property advice. We are able to advise you on these issues as a whole or work alongside your existing advisors to guide you through what the options might be for your business or land ahead of the changes next April.

... our advice to clients is not to rush ... Informed decisions will only possible once the draft legislation has been published.