Overview
- The change allows spouses or civil partners to pass on up to £5 million in qualifying farm and business assets before tax.
- Above that allowance, qualifying assets receive 50% relief with an effective inheritance tax rate capped at up to 20%.
- Government estimates say the number of estates facing higher tax falls from about 2,000 to up to 1,100, largely affecting the largest farms.
- The National Farmers’ Union welcomed the move as a significant relief for family farms, crediting sustained engagement with ministers.
- Some farmers and opposition politicians called the shift a U-turn and argued the threshold remains too low, vowing to keep campaigning for further changes.