“From April 2026, the first £2.5m of combined agricultural and business property gets 100% inheritance tax relief, with 50% relief above that, per individual.”

UK GovernmentPress releaseDecember 23, 2025Read the original

The government raised the inheritance tax relief threshold for farms and businesses on 23 December 2025, effective from 6 April 2026.

Our verdict

True

This is the rule from 6 April 2026. The government raised the 100% relief threshold from £1m to £2.5m in December 2025.

What we found

The 2024 Budget set the 100% relief cap at £1m. On 23 December 2025 the government raised it to £2.5m per person from 6 April 2026, with 50% relief on qualifying assets above that and the allowance transferable between spouses. Our first version compared the claim with the old £1m figure and wrongly rated it False.

The evidence

2 of 2 sources support the claim; none contradict it.

Contradict 0Support 2Background 0

Supports the claim
DEFRA announced the threshold for 100% agricultural and business property relief would rise from £1m to £2.5m from April 2026. [1]
Supports the claim
Assets above £2.5m still get 50% relief; couples can pass on up to £5m of qualifying assets. [2]

How we checked

We checked the claim against Farming UK, Gravita. We reviewed 2 relevant sources.

Sources

[1]Farming UK · DEFRA: Inheritance tax reliefs threshold to rise to £2.5m
[2]Gravita · Government announces major increase to APR and BPR thresholds to £2.5 million

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