Summary
The UK government changed its plan to tax inherited farmland, raising the threshold from £1 million to £2.5 million. This decision came after protests and concerns from farmers and some politicians. The tax will now apply to assets valued over £2.5 million starting April 2026.
Key Facts
- The UK government increased the inheritance tax threshold for farmland from £1 million to £2.5 million.
- The tax, starting in April 2026, will apply to farmland valued above this threshold.
- Farmers have protested against the original plan for over a year.
- Environment Secretary Emma Reynolds stated the change aims to support ordinary family farms.
- Tom Bradshaw from the National Farmers' Union approved of the change, saying it protects many family farms.
- Some politicians, including Markus Campbell-Savours, opposed the original plan, with Campbell-Savours facing suspension for voting against it.
- The original plan faced protests and concerns from some Labour backbenchers and rural MPs.
