How will the Autumn Budget impact Suffolk farming business?

APR & BPR

For many farming businesses, the reliefs provided by APR and BPR were a default position which meant succession planning was rarely more than a thought.

However, proactive succession planning will now be vital to help mitigate any impacts. We are still awaiting further details – in particular around trusts and gifts linked to trusts – but the proposed implementation will follow in April 2026.

Options could include reviewing the business structure or – where this is not possible – repaying the tax demand over 10 years interest free. Alternatively, we may see land being gifted or sold to cover the extra costs.

A number of stakeholders have also mooted the idea of the government supporting older farmers with transition times or relief where options for planning are limited due to their age.

William Hargreaves from Savills' rural team in Suffolk (Image: RMG Photography)

Land values

The assumption is that, due to the reduction of tax reliefs the benefit of investing in land has diminished. However, selling farmland generates cash which has a worse inheritance tax (IHT) treatment than farmland under both current and new IHT rules – so fundamentally it remains a good investment.

We are awaiting more details to better understand the tax relief options available, but we expect values to remain robust.

With the variety of demands placed on land, we will continue to see a range of purchaser types who have their own reasons for investing in land, notwithstanding the tax benefit.

Furthermore, the emergence of certainty regarding future government priorities will likely underpin values. 

Ultimately, it will take a material change in supply and demand dynamics to significantly affect pricing.

Additional impacts 

The Budget made other announcements that are imminent. The acceleration of cuts to the basic payment scheme, a freeze on stewardship payments, changes to employer national insurance contributions and minimum wage increases will all have a significant impact.

Businesses should seek advice and plan their cash flow accordingly. 

The rural sector is no stranger to change. It is a resilient industry that has always found ways to adapt. For the moment we can only focus on what we know, and I have no doubt we will rise to the challenge.

For advice on the rural sector in Suffolk, contact William Hargreaves on 01473 234802 or WHargreaves@savills.com

This article is for general information only and cannot be relied on as financial advice for individuals. Consult your professional adviser.