Budget 2025 update

The government has announced that any unused £1 million allowance for agricultural property relief and business property relief will be transferable between spouses and civil partners, to bring it in line with the treatment of the nil-rate band and residence nil-rate band. This makes the inheritance tax rules for those with agricultural and business assets less complex and fairer. This change will apply to widows and widowers, including where the first death is many years before 6 April 2026, who will now be able to benefit from double the allowance than they would have prior to the Budget 2025 changes.

This means a surviving spouse or civil partner can benefit from the full 100% relief from inheritance tax for up to £2 million of combined agricultural and business ass

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