UK farmland is gaining popularity among high-net-worth individuals and business owners due to its strategic and tax-efficient investment potential amid inflation and political changes. Farmland provides significant advantages, including scarcity, price resilience, and robust tax reliefs. In 2024, UK farmland values increased by 7.3%, driven by investor demand and concerns regarding food security. Key tax reliefs, Agricultural Property Relief (APR) and Business Property Relief (BPR), offer considerable benefits in estate planning, enhancing farmland's investment appeal. However, proposed reforms by Chancellor Rachel Reeves could alter this favorable landscape.
Farmland continues to offer a powerful value proposition: scarcity, price resilience, and unparalleled tax reliefs. According to the Royal Institution of Chartered Surveyors (RICS), UK farmland values rose 7.3% in 2024, buoyed by investor demand, food security concerns, and the monetisation of natural capital through carbon credits and biodiversity offsets.
Farmland offers both legacy and leverage. From a tax and wealth planning perspective, it has few rivals.
At the heart of farmland's appeal are Agricultural Property Relief (APR) and Business Property Relief (BPR) - powerful tools that offer 100% relief from inheritance tax when structured correctly.
APR applies to land actively farmed or let out for agricultural use, provided it's held for two years (or seven if let). BPR can extend that protection to mixed-use or diversified estates that generate trading income, such as from holiday lets or renewable energy.
#uk-farmland #tax-relief #high-net-worth-individuals #agricultural-property-relief #investment-strategy
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