Overview

• Whitehall discussions reported by multiple outlets point to lifting the current £1m threshold to about £5m per owner, with the 50% relief above that level potentially scrapped, as Defra prepares a submission for the Treasury ahead of next month’s budget.
• Under the reform due from April next year, agricultural assets above £1m face a 20% inheritance tax, with HMRC estimating around 2,000 estates would pay more and payments allowed to be spread over ten years interest-free.
• Ministers defend the need for the reform and have declined to confirm any changes, saying they will not comment on speculation.
• Farming organisations and many farmers warn the policy risks forced asset sales, undermines family farms and could harm food security, with protests drawing tens of thousands in London this year.
• Some in the sector say a higher threshold would ease pressure on smaller holdings but shift costs onto larger operations, while others argue the uncertainty has already eroded investment plans and trust.