Now that the UK is no longer part of the EEA following Brexit, the government has announced that it will introduce legislation in the Spring Finance Bill 2024 to restrict the scope of agricultural property relief and woodlands relief to property in the UK.
Property located in the EEA, the Channel Islands and the Isle of Man will be treated the same as other property located outside the UK. The changes will take effect from 6 April 2024.
On a positive note, farm businesses gained an important reassurance on the tax treatment of land entered into environmental land management schemes, when guidance accompanying the Budget said that APR (agricultural property relief) from inheritance tax would be extended from April 2025. In addition, the government has decided not to restrict APR to tenancies of at least 8 years. This follows a consultation document from 2023.
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