What are the Inheritance Tax traps when gifting farmhouses and land?
With the new Inheritance Tax (IHT) rules coming into effect on 6th April 2026, many farmers and business owners are in the process of gifting assets to reduce the impact of the new rules.
Draft legislation confirms that 100% Agricultural Property Relief and Business Property Relief will only apply to £1 million of qualifying assets of an individual’s estate. Above this allowance, 50% relief will apply.
By gifting assets during your lifetime, you reduce the size of your estate and can potentially reduce your Inheritance Tax liability.
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