Will your family have to sell the farm or business for inheritance tax?
Business and farm relief is now full only up to £2.5 million. See the tax, and the 10 interest-free yearly instalments.
Your answer
Enter the value of the business or farm to see the inheritance tax.
About this calculator
For owners of family businesses and farms, after the relief changes from 6 April 2026.
What happens to your answers
We don’t keep them. Your answers go to our server to do the sums and aren’t stored or logged. If you copy a link to your answers, they’re in the link itself, so only share it with people you trust.
How it’s worked out
Qualifying business and farm property gets 100% relief on the first £2.5 million, and 50% above that, so the top slice is effectively taxed at 20%. Shares on AIM get 50% relief. The unused allowance passes to a husband, wife or civil partner. The tax on relieved property can be paid over 10 years with no interest.
Worked example
The business or farm would add about £300,000 of inheritance tax, which can be paid over 10 years at £30,000 a year, interest-free.
Qualifying trading business or farm · other estate £1,000,000
| Business or farm | £4,000,000 |
|---|---|
| Less business and farm relief | − £3,250,000 |
| Extra inheritance tax because of it | £300,000 |
| Paid over 10 years, interest-free | £30,000 a year |
Worked out using HMRC's inheritance tax rates and the business and agricultural property relief rules from 6 April 2026.
Questions people ask
Does every business qualify?
No. It must be mainly trading, not holding investments or cash. Furnished holiday lets and property letting usually don't qualify.
Can I pass it on now instead?
Gifts of business assets can avoid inheritance tax if you live 7 years, but there's Capital Gains Tax to think about. Talk to us.
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