IHT: guidance for businesses & families
Managing landed estates, rural businesses and landholdings
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Upcoming changes in Inheritance Tax Relief. We are here to help.
From 6 April 2026, 100% inheritance tax (IHT) relief will only be available for the first £1m of combined agricultural and business property. Thereafter, this rate will reduce to 50%. This change is expected to net upwards of £500m per annum in taxes from 2028 and is expected to hit ‘family farms’ the hardest. Much can be done over the next 12 months to mitigate this with careful succession planning for your farm.
That’s where Moore Barlow can help. Our dedicated team brings a wealth of expertise across property, private wealth, tax, corporate, and family law to support landed estates, farming businesses, country house estates, vineyards, or equestrian businesses. Our services are holistic, working closely with your team of professional advisers, including tax advisers, accountants, and land agents, to achieve the best outcomes.
Preventing forestalling
While the reforms do not come in until April 2026, the documents published stated that there will be rules to prevent forestalling from 30 October 2024 where transfers are made and the donor is still alive after 6 April 2026. Before any action is taken, professional advice should be sought to ensure any transfers are effective for tax purposes and also achieve the intended outcome.
Join us: bespoke workshops exploring IHT challenges for landowners
Join us for a bespoke workshop which will provide business owners and landowners with valuable insights and guidance on inheritance tax planning and succession strategies.
There are three dates available and all will take place between 10:00 to 12:00 at Moore Barlow’s Southampton office.
Join us: bespoke workshops exploring IHT challenges for landowners
Join us for a bespoke workshop which will provide business owners and landowners with valuable insights and guidance on inheritance tax planning and succession strategies.
There are three dates available and all will take place between 10:00 to 12:00 at Moore Barlow’s Southampton office.
Hear from our legal experts…
At Moore Barlow, we’re not just legal advisers—we’re passionate partners deeply connected to rural communities and the issues that matter. Inheritance Tax (IHT) planning is close to our hearts, and in this video, our rural law experts share how we can support you, your business, and your family with tailored guidance.
We are here to help. Expert legal advice.
Managing land and rural businesses involves a unique set of challenges and opportunities, with these IHT changes being the latest hurdle. We understand the intricacies of rural property ownership, from the nuances of land management to the complexities of succession planning.
We also appreciate the deep connection you have with your land and the legacy you wish to preserve for future generations. We are here to guide you through these complexities, helping to find the right path for your unique situation. Â
Family Farm Tax
It has been forecast that farms could be forced to sell 20% of their land if they cannot afford to pay the IHT bill on the death of the freeholder. We’ve categorised each scenario into a traffic light system, helping you easily identify your best starting point for this IHT challenge.
Green light
For those under 60, succession planning can ensure your land and rural property passes IHT-free if the donor lives for 7 years post-transfer. This encourages good succession and business planning on retirement of parents from the family farm.
Lifetime transfers must not be made without considering what will happen if the donor does not survive 7 years. Wider tax planning advice should also be taken, including gifts with a reservation of benefit and possible capital gains tax consequences.
Amber light
For individuals aged 60-80, we may explore the option of transferring assets to discretionary trusts to benefit you and your family. This approach can provide greater flexibility and control over the distribution of your estate, potentially minimising tax implications while ensuring your legacy is protected.
Additionally, we offer comprehensive succession planning advice, including the possibility of incorporating life insurance policies to supplement and support these plans, if suitable options are available. Our goal is to tailor a strategy that aligns with your unique needs and future goals.
Red light
For those over 80, careful tax and estate planning advice is crucial. Some mental health charities have expressed concern that elderly landowners may struggle with the burden of not being able to pass their farms and businesses on taxfree, leaving their children with too much of a financial burden to make the business viable.
Some clients may therefore need emotional support in addition to tax and estate planning advice.
Changes to Agricultural and Business Property Relief
Sonia Green, Partner in Moore Barlow’s Private Wealth team, examines the 2026 changes to Agricultural and Business Property Relief, offering essential insights in this article.
Succession planning & wills
Your farm, estate, and rural business represents the multi-generational hard work and dedication of you and your family. When it comes to planning for the future and passing on your property, it’s important to get advice from someone who truly understands rural life and can relate to your experiences.
We know that you want to pass on your assets and your wealth thoughtfully and carefully. That’s why we work closely with you and your financial advisers, accountants, agents, or business consultants to ensure all your family’s needs are met. We understand that discussing these matters and planning for succession can be challenging. As experts, we aim to make the process as smooth and collaborative as possible.
Property restructures
Property restructures are key to effective estate and tax planning. Once you receive tailored guidance, we help implement the necessary changes, ensuring a seamless process that aligns with your family’s specific needs and complies with legal and financial frameworks.
We also manage administrative tasks, including Land Registry registration, to simplify the transition. Our goal is to safeguard your family’s interests, handle technical details, and ensure your property is secure and well-organised for the future.
Pre and postnuptial agreements
Prenuptial and postnuptial agreements are essential for protecting wealth and enhancing inheritance tax planning, especially for landowners. These agreements safeguard assets like land and estates, ensuring they align with your wishes while minimising disputes. Though not legally binding, well-drafted agreements carry significant weight in court, providing clarity on asset division and preventing forced land sales to cover tax liabilities.
Our skilled lawyers craft tailored agreements to protect your estate and support your financial goals, including options for civil partnerships through pre-registration agreements. Expert guidance ensures your assets are secure, tax liabilities reduced, and long-term objectives supported.
Partnership & farming business structures
Partnership structures commonly found in rural businesses require careful planning to ensure that the structure is tailored to your needs. Farming partnerships are more complicated than they first appear.
It is quite often the case that they hold valuable assets such as land, machinery, and livestock. This is why it is important for you to get the right advice from experienced professionals who understand the issues that you face. We advise on all aspects of farming business structures including partnerships, sole traders, companies, and Limited Liability Partnerships (LLP). We will ensure your business structure is strategically reviewed and considered as part of your wider estate and tax planning advice.
Meet our expert team:
How Moore Barlow can help you
Proactive advice
Landowners and rural businesses should proactively take advice from their circle of professional advisers, particularly lawyers such as Moore Barlow who specialise in agricultural succession planning and property restructures, and their tax planning accountants.
Consultations
We are offering consultation meetings with our private wealth succession planning lawyers for rural businesses and landowners. These consultations are designed to help ‘map’ out a plan for protecting your land, properties, and multi-generational rural businesses. We encourage all clients to consider these consultations before undertaking any property restructures.
Contact us today to book your consultation meeting
Workshops and guidance
We will be hosting educational workshops and providing guidance with other leading rural professionals throughout 2025. These events will take place to offer advice and support to the rural sector. We are committed to helping landowners and rural businesses navigate the complexities of inheritance tax planning and other related challenges. Explore the latest available workshops below.
Join us: bespoke workshops exploring IHT challenges for landowners
Join us for a bespoke workshop which will provide business owners and landowners with valuable insights and guidance on inheritance tax planning and succession strategies.
There are three dates available and all will take place between 10:00 to 12:00 at Moore Barlow’s Southampton office.
Join us: bespoke workshops exploring IHT challenges for landowners
Join us for a bespoke workshop which will provide business owners and landowners with valuable insights and guidance on inheritance tax planning and succession strategies.
There are three dates available and all will take place between 10:00 to 12:00 at Moore Barlow’s Southampton office.
Our commitment to you, your family, and your business
Protecting assets
We are committed to protecting land and assets for rural businesses and landowning families. We understand the importance of keeping your farm and your land intact for future longevity and viability, and not partitioning for immediate survival. Partitioning ultimately leads to too little land to make a farming business viable.
Food security
Ensuring our farmers and rural businesses are supported to maintain and business plan with land across multi-generations to produce food for our country adhering to our high standards of production, as opposed to lower standards from imported products. The #backbritishfarming campaign is well regarded.
Farming Community Network
At Moore Barlow, we are proud to be associated with the Farming Community Network. We understand the unique challenges faced by farmers and their families, and we are committed to providing additional pastoral support. Through our partnership with this voluntary organisation and charity, we stand by you in times of need. For mental health support within the farming community, please visit their website.
Contact us and discover how we can help with IHT planning
Don’t take our word for it…
Our team accreditations
