From 6 April 2026, the first £1 million of combined business and agricultural property keeps 100% relief; the excess gets 50% relief - an effective 20% IHT rate.
A trading company, partnership share or sole-trade business.
A working farm, agricultural land and buildings.
One shared £1 million band
Business and agricultural property share a single £1m 100% allowance between them - not one each - so this calculator models them together.
50% relief from the first pound - they do not use the £1m band.
This tool isolates the relief mechanics on qualifying assets. The £ nil-rate band and £ residence band apply to the wider estate - model that side with the inheritance tax calculator.
IHT on qualifying assets (deaths from 6 April 2026)
on of chargeable value after relief - assets like these often passed IHT-free before April 2026 Fully relieved - within the £1 million 100% allowance
effective rate on all qualifying assets
per year over 10 interest-free instalments
Pay in 10 annual instalments
IHT on qualifying business and agricultural property can usually be paid in 10 annual instalments, interest-free - about a year rather than a forced sale.
Estimate only. Qualifying status, ownership periods and trusts change the result - take professional advice.
A single pool of qualifying business or agricultural property with the full £1m band available, nil-rate bands ignored. Every pound above £1 million produces 20p of tax.
| Qualifying asset value | 100% relieved | 50% relieved (band) | Taxable value | IHT due (40%) |
|---|---|---|---|---|
| yours |
AIM and unquoted shares are excluded from this table - they get 50% relief from the first pound and never touch the £1m band.
Zero up to the £1 million cap, then a flat 20p of tax for every extra pound.
| Scenario | Taxable | IHT | |
|---|---|---|---|
Business & Agricultural Property Relief Calculator by TaxFly — free UK tax calculators