The true value of land: Planning, opportunities, and future tax changes

The Value of Land

This is an age-old question that sits at the core of strategic estate planning. Whilst most people have a good idea of the value of their land, farm or estate, determining its true value needs considerable professional input.  

It is of course very easy to look at farming publications which provide a range of prices for blocks of farmland, but this is only a guideline. The actual price depends on a range of factors such as location, planning consents, environmental opportunities, soil type, proximity to conurbations, rights of way and so on. Modern farms and estates are also increasingly home to diversification ventures such as camping, farm shops, caravan storage, equestrian or workshops. 

A valuer who deals with the market on a day-to-day basis will have access to a range of comparable evidence from which they will analyse the correct value.  

Do you need a Red Book valuation?

A Red Book valuation, otherwise known as a valuation in accordance with the RICS Valuation Global Standards, is a formal opinion of value by a Chartered Surveyor which can be relied upon by the instructed party. This should not be confused with a market appraisal, which is an informal opinion on a guide price, often provided by an estate agent in the hope of selling a property. 

It is advisable for Red Book Valuations to be carried out when reporting to HMRC. These are formal, evidence-based reports that are not usually challenged by HMRC.  They must meet the high standards set out by RICS, from inspection through to reporting. There are minimum content guarantees, and all firms carrying out these valuations must have professional indemnity insurance. 

Spotting Opportunities

A site visit is a vital way of gleaning information that will support the valuation and is followed by the usual desktop investigations into such things as planning history, environmental and legal considerations, tenure, market commentary, and comparable evidence. 

The visit may also prompt discussions which may include opportunities such as diversification, agri-environmental schemes, development or conversion opportunities. 

One eye on the Tax

In the event of a probate valuation, we will consider opportunities with Agricultural Property Relief (APR) or Business Property Relief (BPR) under inheritance tax.  We can report on existing agricultural activities undertaken on the land to help any claim for APR and also report on ‘Agricultural’ values as well as ‘Market’ values. 

 So what is changing? 

As matters stand, from 6th April 2026, there will be 100% APR or BPR on only the first £1,000,000. This is per person and is not transferable. Anything over the first £1,000,000 will be subject to 50% relief, so the reliefs going forward will be reduced.  

Furthermore, given the future caps on APR and BPR, we are expecting to be required to value livestock and deadstock as part of an Estate for inheritance tax purposes.  

Additional is the value of any existing Agricultural tenancies that may have existed at the date of death.   

What is my recommendation?

Prepare in advance. Don’t wait until April 2026, but this is a prompt to look at succession planning and managing the risk of the new tax liability.  The start is to identify who owns what, with what value and who has what liabilities.  Who are the members of the family to be considered and for what roles?  Where might the family reasonably want to be in 10 or 15 years time?  The answers begin to frame a strategy that might include gifts, life assurance and conscious retention of assets. We have just over 12 months to prepare. 

We will be hosting a seminar that addresses these points in further detail. If this is of interest, please register here. Alternatively, ff you would like any further or personalised advice, please do not hesitate to get in touch with either a member of our team, or one of the team at Batcheller Monkhouse.