Agricultural Property Relief (APR)


Agricultural Property Relief (APR)

This is an automatic relief from INHERITANCE TAX if certain conditions are met and applies to BOTH gifts given in LIFETIME and to the DEATH ESTATE.

APR is given at a rate of 100% on the AGRICULTURAL VALUE of AGRICULTURAL PROPERTY as long as the MINIMUM PERIOD of OWNERSHIP has been fulfilled.

The MINIMUM PERIOD OF OWNERSHIP requirements are as follows:

  • OWNER FARMED PROPERTY: 2 YEARS
  • TENANT FARMED PROPERTY: 7 YEARS

Agricultural value is the value of the land and buildings assuming there is perpetual covenant on the land preventing use other than for agriculture.

APR is only available on property in the UK, EEA, Channel Islands or Isle of Man. It is NOT available on WORLDWIDE AGRICULTURAL PROPERTY.


There is APR available at the LOWER rate of 50% if:

  • TENANTED farm AND
  • LEASE taken out before 1 SEPT 1995 AND
  • OWNER does not have the right to obtain VACANT POSSESSION within 2 YEARS at the DATE OF TRANSFER.