Amongst uncertainty about APR changes, is gifting the answer?

The forthcoming changes to APR in April 2026 are understandably alarming farmers. We are often asked for advice but until more detail is given (and the likelihood of a U-turn ruled out) our hands are a little tied. When people seek advice on their wills, we continue to advise them using the same long-standing principles: look after your loved ones, consider giving to charity to reduce your IHT rate by 10%, think about trusts if your family circumstances are complex, and so on.

However, go behind the numerous news stories about APR, and some things haven’t changed – gifts.

Outright gifts can mitigate Inheritance Tax (IHT) if the gift-giver lives for 7 years after gifting. And within the 7 years taper relief may apply which can reduce the inheritance tax that is payable on the value of the gift.

Currently, there is no tax benefit to making gifts during a person’s lifetime of agricultural assets, or business assets either. Indeed, Capital Gains Tax (CGT) rules actually encourage owners to hold onto assets until death.

Is this part of the government’s objective?

For older farmers to pass on their assets to the younger ones earlier? As well as providing more revenue? We may never know. And this isn’t always a practical solution. But it’s worth considering. If you’re thinking of retiring, if your sons and daughters are chomping at the bit to manage the farm, if you can afford to do so, then gifting some or all of your interest in your farm might be something worth considering. And at some point, you will need to create a succession plan for your business, so why not sooner, not later?

Talk to your accountant. Think about succession. Then seek legal advice.

Solicitors can’t predict what the chancellor will do next, but they are trained in the law, and highly experienced in inheritance and agricultural matters.

Gifting might just be the answer to this most taxing of problems.

For more information about Succession Planning, please contact Jenny Barron on 01756 692866 or email jenny.barron@awbclaw.co.uk.