Sunir Watts and Natalie Spong examine the challenges facing family farms in Business & Accountancy Daily
Sunir and Natalie's comments were published in Business & Accountancy Daily, 8 September 2026, and can be seen here.
Sunir Watts, Partner, and Natalie Spong, Associate, in our Private Client department, examine the significant challenges currently facing Britain's farming sector, as increasing numbers of farms are brought to market amid rising costs, falling returns and uncertainty around succession planning.
With agricultural inflation continuing to outpace wider inflation and post-Brexit support schemes reshaping farm incomes, many farming businesses are operating in an increasingly difficult environment.
The article explores the impact of recent changes to Inheritance Tax (IHT) reliefs for agricultural and business property. Since 6 April 2026, the previously uncapped 100% relief available through Agricultural Property Relief (APR) and Business Property Relief (BPR) has been restricted, with full relief now capped at £2.5 million per individual or trust. These changes have prompted many farming families to reassess succession plans and consider how best to preserve family wealth while maintaining operational viability.
Sunir and Natalie highlight that, despite the reduced reliefs, APR and BPR remain valuable planning tools. They discuss the importance of carefully assessing any decision to sell or diversify farmland, as doing so may affect eligibility for tax reliefs and could result in the loss of valuable Capital Gains Tax advantages. The article also considers opportunities involving the transferable £2.5 million allowance between spouses and civil partners, which may influence ownership structures and succession strategies.
The article concludes by outlining practical planning considerations, including the use of discretionary trusts within Wills, funding potential IHT liabilities through liquidity planning and life insurance, and structuring ownership through private companies where appropriate. With the taxation of farming assets becoming increasingly complex, the authors emphasise the importance of obtaining specialist advice and keeping succession and estate planning arrangements under regular review.
Read the full article on the Business & Accountancy Daily website, [subscription required].
