Farmers Face Inheritance Tax Challenges Under New UK Budget

Chancellor Rachel Reeves' recent tax reforms limit agricultural inheritance relief to £1 million, sparking criticism and concern among farming communities.

The new inheritance tax policy caps agricultural property relief at £1 million, affecting many farmers who previously passed on estates tax-free.
Chancellor Reeves' announcement has been met with backlash for its complexity and potential impact on family farms, with critics calling for a policy reversal.
Farmers are advised to consider strategies like gifting assets during their lifetime or dividing farm ownership to maximize tax relief benefits.
The policy change is set to take effect in April 2026, with further government consultation expected in early 2025 to clarify the reforms.
The National Farmers Union disputes government claims about the policy's limited impact, suggesting it could affect up to half of all working farms.