Overview
- Couples can now pass up to £5 million in qualifying agricultural or business assets before inheritance tax applies, up from a previous combined £2 million plan.
- Qualifying assets above the new threshold will receive 50% relief, cutting the effective rate to up to 20% rather than the standard 40%.
- The government estimates affected estates will fall from about 2,000 to roughly 1,100 overall, with agricultural estates reduced from 375 to 185.
- Ministers will introduce a Finance Bill amendment in January, with the revised rules scheduled to take effect in April 2026.
- Farming groups such as the NFU welcomed the move as substantial mitigation, while opposition parties and campaigners argued the change does not go far enough.