Agricultural Property Relief

At SMH Wills & Probate, we offer a specialised service in Agricultural Property Relief (APR) for your estate tax planning. If you are a landowner with agricultural property, our team of experts can assist you in navigating the complex world of estate taxes and help you to reduce your tax liabilities through Agricultural Property Relief.

What is Agricultural Property Relief?

Agricultural Property Relief is a tax relief available in the UK for landowners who own agricultural property. It allows for a reduction in the value of qualifying agricultural assets, meaning that less tax is payable on the estate when it is passed on to the next generation.

The relief applies to both the transfer of the property during the owner’s lifetime and on death. The percentage of relief available can be as high as 100% of the value of the property, depending on a number of factors, including the length of ownership and the type of property.

Why is Agricultural Property Relief important?

Without proper planning, estate taxes can be a significant burden on the transfer of property from one generation to the next. Agricultural Property Relief provides a way for landowners to reduce their tax liabilities and pass their assets on to their heirs in a tax-efficient manner.

Furthermore, agricultural property is often a family asset with a rich history and sentimental value. By utilising Agricultural Property Relief, landowners can protect their family legacy and ensure that the property remains in the family for future generations.

What can be eligible for Agricultural Property Relief?

Provided such property is situated in the UK, Channel Islands, the Isle of Man or the European Economic area, the following assets may qualify for Agricultural Property Relief:

• Agricultural land or pasture (including ‘set-aside’ land)
• Woodland occupied with agricultural land or pasture
• Buildings used in connection with the intensive rearing of livestock or fish (not for sport)
• Farm cottages
• Farm buildings (of a size which makes them ancillary to the land)
• Farmhouses
• Growing crops when transferred with land
• Stud farms engaged in breeding and rearing of horses and the land for grazing

Agricultural value

Agricultural value is not the open-market value, but ‘the value which would be the value if the property were subject to a perpetual covenant prohibiting its use other than as agricultural property’.

It does not include any development value or the added value of a house as a desirable country residence.

Minimum periods of ownership to qualify for the relief

The property must either:

• Have been occupied by the transferor for the purposes of agriculture for 2 years preceding the date of transfer

or

• have been owned (or leased) by the transferor for the 7 years preceding the transfer and let or occupied (throughout the 7 years) for the purposes of agriculture by the transferor (landlord or tenant)

If a spouse or civil partner inherits property, any period during which their spouse or civil partner owned or occupied it can be combined with the survivor’s period of ownership.

Periods of ownership can also be combined when one form of agricultural property replaces another.

Why use SMH Wills & Probate for Agricultural Property Relief?

Our team of experts at SMH Wills & Probate specialise in Agricultural Property Relief and can help you to navigate the complexities of estate taxes.

We provide a range of services including:

Estate planning: We can help you to structure your estate to maximise Agricultural Property Relief and minimise your tax liabilities.

Valuations: We can provide valuations for your agricultural property to determine the amount of relief available.

Tax advice: We can advise you on the tax implications of transferring your agricultural property during your lifetime or on death.

Succession planning: We can help you to plan for the transfer of your agricultural property to the next generation, ensuring that your family legacy is protected.

Contact SMH Wills & Probate 

At SMH Wills & Probate, we understand that every landowner’s situation is unique. That’s why we offer a personalised service that takes into account your individual circumstances and goals.

Our team of experts has the knowledge and experience to help you navigate the complexities of estate taxes and maximise the benefits of Agricultural Property Relief.

Contact us today to schedule a consultation and learn more about how we can help you to protect your family legacy and reduce your tax liabilities through Agricultural Property Relief.