The Government’s autumn budget announced changes to agricultural property relief (APR) and business property relief (BPR) that will affect stud, riding school, and livery yard owners. From April 6, 2026, the full 100% relief from inheritance tax (IHT) will be restricted to the first £1m of combined agricultural and business property, with only 50% relief available above this amount. This has raised concerns among farmers and equine stud owners who could be affected by the changes.
Livery yards and riding schools trading as businesses may qualify for business property relief, but generally do not qualify for agricultural property relief. Owners are advised to seek professional advice from solicitors and tax advisors to confirm their situation and potential tax liability. The changes will cap business property relief at 50% for anything over £1m, and it is important for individuals to understand how these changes will impact them.
It is recommended that individuals affected by the changes do not panic, but instead seek advice on valuing their assets and potential tax liability. Options for mitigating IHT tax liability include taking out insurance against the liability or considering gifting within their lifetime. The British Horse Society encourages owners of riding centers and livery yards to seek legal advice and guidance to understand the impact of the changes on their individual circumstances.
