The UK Government has softened its inheritance tax plans for business owners and farmers. After mass tractor protests in London, plus some very angry protests in Brussels and elsewhere against further EU regulation, the mood music has changed slightly. At least the news is good over Christmas. Here’s some comment from Price Bailey;
Agricultural and Business Property Reliefs threshold will be increased from £1m to £2.5m when it is introduced in April 2026, following months of farmers and business owners protests. The change aims to protect rural businesses while ensuring larger estates contribute more.
Richard Grimster, Partner & Head of Tax at leading accountancy firm Price Bailey, said: “The news is very welcome for all owner managers and will take a level of future complexity and risk out of the estates of many; it would have been politically better to have made this announcement at the Budget last month, as it is a policy change to encourage growth and ambition to a greater extent.
While the focus will immediately be on farming estates, major benefits of the revision will pass to owner managers in all sectors and simplify many estates where the assets are of a value lower than £5m. Care should still be taken when planning for the succession of family businesses, in our experience this new prospect of IHT is only one factor to consider.”
Gary Frear, Partner & Head of Equine at Price Bailey, also comments on the announcement:
“This is welcome news for small family farms, just in time for Christmas.”
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