Overview
- The revised rules take effect in April and raise the individual cap for 100% relief on qualifying agricultural and business assets from £1 million to £2.5 million.
- Spouses or civil partners can now pass on up to £5 million in qualifying assets before tax, with 50% relief above that and a reduced effective rate of up to 20%.
- Officials say the overhaul will markedly cut the number of estates affected, with government estimates pointing to a reduction from around 2,000 under the original plans to about 1,100.
- Months of tractor protests and coordinated pressure from rural MPs—around 40 of whom were prepared to back an amendment or abstain—preceded the climbdown, though No 10 denies it was driven by rebellion threats.
- Farming groups, including the NFU, welcomed the shift as important relief but called it only a partial win, pointing to ongoing profitability pressures and the sector-wide recommendations from Baroness Batters’ review continuing into 2026.