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Labour U-turns on farmer inheritance tax after tractor protests

The raised threshold protects 85% of family farms from inheritance tax, reversing a policy that sparked months of protests and political pressure across the UK.

  • The Labour government has increased the inheritance tax threshold for agricultural properties from £1 million to £2.5 million, benefiting many family farms.
  • This change allows couples to combine allowances to transfer £5 million of property without tax, responding to protests from farmers.
  • Tom Bradshaw, President of the National Farmers Union, stated the move is a "huge relief" but warned many farms still may face financial challenges.
  • Critics highlight that despite the concession, asset-rich farmers might still struggle to afford tax bills, risking the viability of their farms.
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UK govt to relax farmers inheritance tax after protests

The UK government said Tuesday it will raise inheritance tax thresholds for farmers' estates from £1 million to £2.5 million, signalling a major climbdown of a policy that triggered months of protests.

·Missoula, United States
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GOV.UK broke the news in United Kingdom on Tuesday, December 23, 2025.
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