Overview
- The government confirmed agricultural assets will have a £2.5 million per-person inheritance tax threshold from April 2026, replacing the 2024 plan to tax amounts above £1 million at 20%.
- Spousal transfer provisions mean many couples can pass up to £5 million in qualifying farm assets without an inheritance tax bill.
- The NFU hailed the change as a huge relief after a 14‑month campaign, with president Tom Bradshaw citing direct talks with the prime minister and DEFRA.
- DEFRA Secretary Emma Reynolds said the shift is intended to protect ordinary family farms and underpin food security.
- Local leaders welcomed the uplift but warned more work may be needed, as NFU branches schedule January advice sessions and specialists review final Finance Bill wording.