The Chancellor's Spring Budget 2024 announced changes to Agricultural Property Relief (APR) and the scope of IHT. 

Farmer tractor

Key measures in respect of Inheritance Tax (IHT) announced at Spring Budget 2024 include:

Scope of IHT

From 6 April 2025 at the earliest: 

  • The government intends to move to a residence-based regime for IHT, rather than the current domicile-based regime.
  • A 10-year exemption period for new arrivals and a 10-year ‘tail-provision’ for those who leave the UK and become non-resident is proposed. 
  • The treatment of non-UK assets settled into a trust by a non-UK domiciled settlor prior to 6 April 2025 will not change.
  • A policy consultation on these changes will be published later in 2024, followed by draft legislation. 

See Non-domicile status, deemed domicile & tax

Payment of IHT

From 1 April 2024:

  • Personal representatives of estates will no longer need to have sought commercial loans to pay IHT before applying to obtain a ‘grant on credit’ from HMRC.

See Probate: At a glance

Agricultural Property Relief (APR) and Woodlands Relief

From 6 April 2024: 

  • As previously announced, legislation will be included in Spring Finance Bill 2024 to restrict the scope of APR and Woodlands Relief to property in the UK. 

From 6 April 2025:

  • Legislation in a future Finance Bill will extend the scope of APR to environmental land management.  
  • Relief will be available for land managed under an environmental agreement with, or on behalf of, the UK government, Devolved Administrations, public bodies, local authorities, or approved responsible bodies. This includes agreements in place on or after 6 March 2024.

See IHT Agricultural Property Relief and Farming: Tax Overview

Topical guides on this topic

Spring Budget 2024: At a glance
A summary of the key measures announced that affect individuals and businesses.


Back to Budget 2024 

External links

Policy paper: Spring Budget 2024: Non-UK domiciled individuals policy summary

Policy paper: Technical note: Changes to the taxation of non-UK domiciled individuals

Policy paper: Taxation of environmental land management and ecosystem service markets

Policy paper: Changes to the geographical scope of agricultural property relief and woodlands relief for Inheritance Tax