Overview
- From April 2026, relief on agricultural and business property will be capped at £1 million per person, with an effective inheritance tax charge of up to 20% on value above the threshold.
- Exchequer Secretary Dan Tomlinson told MPs the government will proceed with the policy, calling it a difficult but fair change to help restore the public finances.
- A CenTax proposal to introduce a minimum-share rule to fund a higher exemption of up to £5 million was rejected, with ministers arguing it would create more losers and affect over 1,000 estates.
- Farmers’ groups and cross-party MPs warn the cap risks forcing sales of land or assets, and campaigners plan a ‘Day of Unity’ rally in London on 24 November to urge a rethink.
- Further inheritance tax adjustments are under review, with reports pointing to possible limits on lifetime gifts and changes to the seven-year rule and taper relief, and consultations expected on trusts and gifts.