Overview
- Ministers confirmed a £2.5 million per-person ceiling for agricultural assets, with spousal transfers enabling many couples to pass roughly £5 million without inheritance tax.
- The revision replaces the 2024 plan to tax farm value above £1 million at 20%, a proposal that sparked protests and deep concern across rural communities.
- The rules come into force in April 2026, with practical application to be clarified in the forthcoming Finance Bill and guidance.
- The NFU described the uplift as a huge relief after sustained lobbying, while local figures warn further steps may be needed to protect some family farms and address inflation pressures on the threshold.
- Local support is ramping up, including an NFU Herefordshire briefing on January 8 to help farm families plan intergenerational transfers under the updated regime.