Agricultural property relief (APR) is a valuable relief from inheritance tax (IHT), available to both farmers and landowners.  However, historically, the relief was restricted to land in the UK, Channel Islands and the Isle of Man.

As a result of intervention by the European Commission, the UK Government has extended APR and woodland’s relief to all agricultural property in the European Economic Area (EEA) from 22 April 2009.

Agricultural property includes stud farms as well as traditional agricultural property.


This has far reaching advantages for many people, including: -

1. Individuals whose worldwide assets are assessable to IHT. They may now qualify for APR on farmland or other farm property situated in the EEA.

2.Individuals or businesses who have sold farm property in the UK and purchased replacement farm property in the EEA. They may now continue to qualify for APR.

3.Individuals who have made gifts of agricultural property in the EEA.  They may now claim holdover relief from capital gains tax (CGT) going back to gifts made in 2003/04.  The deadline for a 2003/04 claim is 31 January 2010.

4.Executors and beneficiaries of estates where the donor died or made gifts of agricultural property located in an EEA state on or after 23 April 2003.  The IHT is now eligible to be repaid.  Currently, the earliest deadline for claiming repayments is 21 April 2010.

In relation to points 3 and 4 above, urgent action may be required in order to meet the earliest deadline for reclaiming the tax paid.

If you are affected by the new rules, please contact your AG partner for advice.

Posted on 09 Oct 2009