Government waters down farm inheritance tax plan | EUROtoday

Government proposals to tax inherited farmland have been watered down, with the deliberate threshold growing from £1m to £2.5m.

The climbdown follows months of protests by farmers and concern from some Labour backbenchers.

At final yr’s Budget, ministers mentioned they’d begin imposing a 20% tax on inherited agricultural property value greater than £1m from April 2026.

Environment Secretary Emma Reynolds mentioned: “We have listened closely to farmers across the country and we are making changes today to protect more ordinary family farms.”

“It’s only right that larger estates contribute more, while we back the farms and trading businesses that are the backbone of Britain’s rural communities.”

Head of the National Farmers’ Union Tom Bradshaw welcomed the change, telling BBC Radio 5 Live it “takes out many family farms from the eye of pernicious storm”.

Gavin Lane, President of the Country Land and Business Association, mentioned: “The government deserves credit for recognising the flaws in the original policy and changing course.

“However, this announcement solely limits the harm – it does not eradicate it completely.

“Many family businesses will own enough expensive machinery and land to be valued above the threshold, yet still operate on such narrow profit margins that this tax burden remains unaffordable.”

In the 14 months for the reason that preliminary proposal was introduced, there have been common protests by farmers exterior Parliament.

Some Labour MPs in rural areas have additionally expressed concern. At a latest parliamentary vote on the plan, a dozen backbenchers abstained and one, Markus Campbell-Savours, voted in opposition to.

Campbell-Savours was subsequently suspended for voting in opposition to the federal government, which means he now sits as an impartial MP.