Overview

• The UK government plans to impose a 20% inheritance tax on agricultural and business assets exceeding £1 million starting in April 2026, with allowances potentially raising the threshold to £1.5 million or £3 million for couples.
• Government estimates suggest only 500 agricultural estates annually will be impacted, based on historical tax relief claims, but farming groups dispute this figure as misleading.
• The National Farmers’ Union (NFU) and other groups argue that up to 75% of commercial farms could face tax liabilities, citing higher farmland values and excluding smaller, non-commercial estates from their calculations.
• The Country Land and Business Association (CLA) claims that as many as 70,000 farms could be affected over a generation, though this figure reflects potential long-term impact rather than annual cases.
• More than 10,000 farmers protested in Westminster this week, with critics warning that the tax changes could impose unmanageable financial burdens on medium-sized working farms despite a 10-year payment option.