New UK farm inheritance tax rule will cause ‘significant challenges’, say accountants

The first £2.5m of combined agricultural and business property will continue to receive 100% relief from inheritance tax, with 50% relief on amounts over £2.5m. Photograph: Tolga Akmen/EPA

A new inheritance tax regime for UK farms and family businesses comes into force on Monday and will present “significant challenges” for those affected, according to accountants.

In October 2024 the government announced plans to levy inheritance tax on farms – prompting an outcry in many quarters.