Ministers raise inheritance tax threshold for farms after backlash
PositiveFinancial Markets
- In a significant policy shift, UK ministers have announced an increase in the inheritance tax threshold for farmland from £1 million to £2.5 million, responding to extensive protests from campaigners and rural MPs concerned about the viability of family farms. This change will take effect in April 2026, following a statement from the environment department released just before Christmas.
- This adjustment is crucial for family-run farms, which have faced financial strain under the previous threshold, potentially jeopardizing their future. The increase aims to alleviate some of the tax burdens on these farms, allowing them to remain within family ownership and continue operations.
- The decision reflects ongoing tensions within the government regarding tax policies, particularly as Chancellor Rachel Reeves faces criticism for her broader budget strategies, which include tax increases targeting wealthier households. The backlash from rural Labour MPs highlights the complexities of balancing fiscal responsibility with the needs of specific constituencies, particularly in the agricultural sector.
— via World Pulse Now AI Editorial System