Agricultural estates

Combining sensitivity with a practical and straight forward approach, our probate lawyers have particular expertise in administering large landed and farming estates and in dealing with their unique complexities.

We understand what it means to lose someone and that each estate is unique, which is why we offer a bespoke service, delivering support tailored to your individual needs. Our team and the firm as a whole has a deep connection to the agricultural sector and has delivered peace of mind to generations of farming families.

If you are dealing with the estate of a landowner or farmer it is important to assess the intricacy of the estate and the type of support you need. Farmland and other agricultural assets, even possibly the farmhouse, may qualify for Agricultural Relief (AR). Our team can offer expert probate advice to help you understand and navigate the process of administering an agricultural estate and claiming the relevant reliefs. By working closely with our Wills, Estate & Tax Planning, Trust & Tax Management, Residential Property & Conveyancing and wider Agricultural teams, we have the depth and breadth of experience to advise on every aspect of probate and beyond to obtain the best result for the family.

What is Agricultural Relief?

AR is a relief against Inheritance Tax (IHT) available on the agricultural value of agricultural property. Property includes land, buildings (including farmhouses, or other property occupied e.g. by farm workers), livestock and woodland. As from 6 April 2024, the relief applies only to property in the UK. Previously relief was also available on land in  the Channel Islands, the Isle of Man and the European Economic Area .

The relief is available where the deceased was a sole trader or a partner in a farming partnership. Relief may also be available for the deceased’s shareholding in a farming company. However, care needs to be taken to identify who actually owns the land and who is in occupation. Thought also has to be given to other potential assets owned by the business.

Currently, where AR is available the IHT on the agricultural value (referred to below) is reduced by 100% and so fully exempt from IHT where:

• The transferor has vacant possession or the right to obtain it within the next 12 months (which has been extended, by concession, to 24 months); or
• The property is let on a tenancy which began after 31 August 1995; or
• The transferor has owned his interest in tenanted land since before 10 March 1981 and certain conditions are satisfied (which are outside the scope of this information sheet).

In all other cases, the agricultural value is reduced by 50%.

However, from April 2026 AR will be limited.  Only the first £1million of the combined value of business and agricultural assets will be able to attract full relief at 100%.  Assets over £1million will have relief restricted to 50%. The relief is to be applied proportionately across the qualifying assets.

How do you qualify for Agricultural Relief?

In order to qualify for the relief, there must be agricultural land or pasture which is occupied for agricultural purposes. Agricultural purposes is not defined but is generally understood to be for food production. Where there is qualifying land, the relief can extend to the woodlands and buildings that are associated with and ancillary to the farmland.

In order to qualify for the relief, the buildings must be of a “character appropriate” to the land.

The land will need to be owned for at least two years to qualify for the relief. If the land is owned but occupied by someone other than the owner for agricultural purposes then the land will need to be owned for seven years.

Do you pay Inheritance Tax (IHT) on farmland?

If the land is used for agricultural purposes and has been owned for the required period of time then the agricultural value of the land is relieved from IHT, subject to the new capped allowance when it comes into effect in 2026. However, the market value of the farmland can be significantly different to the agricultural value, such as where the land has development potential. In these circumstances it may be possible to qualify for business relief in relation to the difference in value, and so potentially avoid IHT on the full market value of the farmland, depending on the value of relief claimed from April 2026.

Does a farmhouse qualify for Agriculture Relief from Inheritance Tax?

A farmhouse may qualify for relief provided it is of a character appropriate and is occupied by a farmer together with the adjoining farmland. This will be very fact specific as the extent of land farmed, the size of the farmhouse, the time spent farming and the locality of the farm will all be factors, alongside others, in considering if a farmhouse will qualify for relief. If the house does qualify for relief it will only be able to attract relief on the agricultural value of the house and not the full market value.

Are farm cottages eligible for relief from Inheritance Tax?

It is possible to claim agricultural relief on a farm cottage but it will depend on who occupies the cottage. If it is occupied by a farm worker it should qualify. If, for example, the cottage has been let on an assured shorthold tenancy, it won’t qualify for AR but may still attract business relief if taken with a number of factors the cottage only forms a small part of the overall farm business.

Is relief from Inheritance Tax available if not all assets of the farming business are used for agricultural purposes?

In many farm businesses diversification has taken place over a number of years in order to increase the profitability and income streams for the farm owner. This diversification may affect the availability of AR on the business as a whole. However, in some cases business relief may be applied instead.

How do you value a farm for Inheritance Tax?

In order to value the farm all aspects need to be considered, such as the land, the buildings and houses, and also the machinery, crops and livestock. If the land is farmed through a partnership or limited company then the partnership interest or shareholding will need to be valued taking into account the underlying asserts of the business. In valuing a farm it is sensible to work closely with a good agricultural surveyor and the farm accountant.

Let our highly experienced Probate and Will, Trust & Estate Disputes teams help minimise the stress for you at a difficult time. We offer a wide range of options, depending on how much support you need.

As one of the largest teams of probate and contentious probate lawyers in Kent and the South East, we have a vast depth and breadth of experience and combine sensitivity with a practical approach to dealing with even the most complicated of issues. Our award winning team specialises in administering complex, high and ultra-high net worth estates, as well as estates with agricultural and business assets.

If problems arise, our highly regarded Will, Trust & Estate Disputes lawyers help resolve issues as quickly and cost effectively as possible. We can also draw on expertise from our Wills, Estate & Tax Planning, Tax Management and Residential Property & Conveyancing teams as needed.

Our probate experts also have a great deal of experience in working on international estates and the complexities involved here and have a trusted network of overseas lawyers we work with regularly.

We also have specific expertise in dealing with unusual assets and holding structures. In addition, our team can assist with heritage assets and reliefs, conditional exemption and offers in lieu of tax.

We understand what it means to lose someone and that each estate is unique. This is why we offer a bespoke service, delivering support tailored to your individual needs at this difficult time.

• Full estate administration: We will deal with each aspect of the probate process, so you are not burdened with the responsibility
• Executor support service: You choose which parts of the process you want to carry out yourself and which parts you would like to hand over to our probate experts
• Grant-only service: We apply for the Grant of Representation on your behalf, enabling you to do the rest of the work yourself
• Independent Administration: A service for estates where those involved in administering an estate feel that they can go no further with the process and require an Independent Administrator to be appointed to resolve the issue.

Our probate questionnaire can help identify the type of help you may need.