Agricultural Property Relief Trust
A carve-out that settles agricultural property on a discretionary trust, before residue, so that any Agricultural Property Relief on it is fully used on death.
For the general law, see Understanding trusts.
What it is
An addition that settles agricultural property on a discretionary trust so that any Agricultural Property Relief on it is fully used on death. It works just like the Business Property Relief Trust: it is a carve-out - the qualifying assets are set aside off the top, before the residue, so they never form part of the residuary estate - and it directs the trustees to take advice on the tax position before dealing with the fund.
On a single will it takes effect on death. On mirror wills you set, per testator, whether it fires whenever that testator dies or only if that testator survives the other (the second death).
The clause reflects the restriction from 6 April 2026 (100% relief limited to the first £2.5 million of combined agricultural and business property, excess at 50%) and excludes property in the EEA, Channel Islands or Isle of Man from qualifying.
Who it suits
- Farming and landowning clients whose estate includes agricultural property that qualifies for the relief.
Which will it goes in
- Single wills - any number, each taking its assets before the residue.
- Mirror wills - any number. Which testator each one applies to - one half or both - and whether it fires whenever that testator dies or only if they survive the other are both chosen at the quoting stage in the quote builder (the Configure trusts & additions drawer, using the testator columns and shared Both spouses block), not in the drafting form.
Add it as an order line ("APR Addition"). It sets its assets aside before the residue and coexists with any residue arrangement.
What you'll set on the form
Trustees and beneficiaries
The standard trustee and beneficiary settings apply - see the shared settings. The beneficiaries are the discretionary class of the agricultural fund.
The agricultural assets and relief
| Setting | Choices | Default | What it does |
|---|---|---|---|
| Agricultural asset type(s) | Working farm · Let agricultural land · Farmhouse occupied with land | - | Required - at least one. The categories of agricultural property being settled. |
| Properties (optional) | one or more properties | none | Specific named properties to add alongside the asset-type descriptions. |
| Anticipated relief rate | 100% · 50% · Mixed | Mixed | The Agricultural Property Relief rate you expect: 100% (no tax on the agricultural value), 50% (tax on half), or Mixed (states both apply). |
Good to know
- Like the First-Death Capped Trust, it is a carve-out set aside before the residue, so it sits alongside any residue arrangement rather than competing with it.
- On mirror wills you can put a single shared trust on both halves and set each to only if this testator survives the other, so the agricultural assets are ring-fenced just once - on the second death.
- Don't settle the same property here and also give it away elsewhere - the form won't allow the same asset in two places.
- Where assets also qualify for Business Property Relief, Agricultural Relief takes priority on the overlapping value.
- You need at least one asset type; named properties are optional and add to it.
The law behind it
- Understanding Trusts - A Plain-English GuideGeneral guidanceWhat a trust is, how it works, and a plain-language tour of every main type of trust used in England & Wales.
Related
- Business Property Relief TrustProductA carve-out that settles named business holdings on a discretionary trust, before residue, so that any Business Property Relief on those assets is fully used on death.