Labour U-turns on farmer inheritance tax after tractor protests
The threshold rise from £1 million to £2.5 million means 85% of farms will avoid inheritance tax from April 2026, easing financial pressure on family farms.
- On Tuesday, the UK Government announced that Defra will increase the inheritance tax threshold on farms from £1 million to £2.5 million in April 2026.
- Following sustained tractor convoys and lobbying, 14 months of campaigning by the National Farmers’ Union and farmer campaigners, plus more than 250,000 petition signatories, pressured ministers to rethink the tax.
- Under the revised rules, the number of estates affected will fall from around 2,000 to about 1,100, and agricultural estates from 375 to 185, with a 50% relief and a reduced tax rate up to 20%.
- NFU leaders welcomed the change as a huge relief after 14 months of campaigning, while Gavin Lane, President of the CLA, and Conservative leader Kemi Badenoch urged further tax scrapping.
- An amendment to the Finance Bill will be tabled in January to implement the change, with only 185 agricultural estates forecast to pay more inheritance tax next year under revised rules.
126 Articles
126 Articles
Labour’s inheritance tax U-turn is a hollow victory for farmers
Yesterday it was reported that the Labour government has once again made a U-turn on a policy proposal, this time on the inheritance tax raid on family farms. Under the amended proposals, the inheritance tax relief threshold would be increased to £2.5 million from the originally proposed rate of £1 million. An additional £2.5 million relief rate would be available for spouses, meaning that in these cases, farms with a value of up to £5 million w…
Farmers' inheritance tax climbdown welcomed by Cheshire MPs on both sides of spectrum
The government has confirmed the threshold for Agricultural Property Relief (APR) and Business Property Relief (BPR) will increase from £1 million to £2.5 million when reforms are introduced in April 2026.
Government waters down inheritance tax rise for farmers after months of protests
The threshold for the controversial tax has been more than doubled per person
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