In recent years, British farmers have faced growing pressures, from Brexit to COVID and the Ukraine war. For some of them you can now add planned inheritance tax (IHT) reforms – announced in the budget last autumn – to that list.
The proposals to cut certain agricultural reliefs sparked protests by farmers across the UK. Currently, farms benefit from 100% relief on agricultural and business assets, but from 2026 the relief will be capped at £1 million, with excess taxed at 20% (half the usual rate). Exactly how many farms will be affected is not yet clear but estimates range between a quarter and a third.
