The Minister of State at the Department for Environment, Food and Rural Affairs (Defra), Dame Angela Eagle has put an end to rumours that the UK Treasury may soften the inheritance tax proposals in relation to family farms.
When speaking on BBC’s ‘Farming Today’ on October 17, Eagle revealed that despite the speculation, there is “no likelihood” that the Treasury will rework its inheritance tax reform ahead of next month’s Budget.
This means that from April 2026 onwards, there will be 100% relief on the first £1 million of farm assets and then 50% relief on assets after that, equating to an effective tax rate of 20%.
The rumours that were circulating in the last few weeks suggested that the Treasury was considering adopting the ‘minimum share rule’, which was proposed by the Centre for the Analysis of Taxation (CenTax).
This proposal would have granted full relief from inheritance tax up to £5 million per person, a 50% relief between £5 million and £10 million per person, and no relief for assets worth anymore than that.
UUP
Ulster Unionist Party (UUP) spokesperson for agriculture, Robbie Butler MLA outlined that the “there will be deep disappointment across the farming community following the false hope created by rumours of changes to the family farm tax.”
Butler noted: “It’s clear that Labour’s farming minister has shut the door firmly in the faces of our farmers at the very moment when meaningful change was possible, ahead of the budget.
“The rumoured proposals had given hope that the Government had finally recognised the strength of feeling across rural communities on this issue – but once again, Labour’s red hand slaps farmers in the face.
“This is a bitter blow to hardworking family farmers who simply want fairness and a future for the next generation,” he added.
Butler declared that the UUP will continue to lobby to affect change in regards to these inheritance tax proposals.
Protests
Plans have been set out by farmers across England, Scotland, Wales, and Northern Ireland for a coordinated day of tractor runs to protest against the inheritance tax reform.
The ‘National Day of Unity Go-Slow Day’ is set to take place from 10:00a.m to 4:00p.m on Monday, November 24, which is two days before the Chancellor of the Exchequer, Rachel Reeves announces this year’s Budget.
The protest is being led by many grassroots farming groups across the UK, including All Farmers, Farmers for Fairness, Farmers to Action, Midland Farmers, East Anglian Farmers Unite, and Digon Yw Digon (Enough is Enough).
