Overview
- From April, spouses or civil partners can pass on up to £5 million in qualifying agricultural or business assets before inheritance tax applies, according to Defra.
- Above that allowance, qualifying assets receive 50% relief, reducing the effective inheritance tax rate to up to 20% rather than the standard 40%.
- Ministers say the revision cuts the number of estates facing higher bills from roughly 2,000 under the original plan to about 1,100, largely affecting the biggest farms.
- The move follows months of tractor protests and political pressure, with NFU president Tom Bradshaw calling it a “huge relief” after direct talks with the prime minister and the Defra secretary.
- Farming groups and local organisations, including in Bolton and the Midlands, warn larger estates remain exposed and vow to press for full relief or higher thresholds.