UK government raises farm inheritance tax relief to GBP 2.5M after months of protests, protecting most family farms from higher tax.
The UK government announced on Tuesday, 23 December 2025, that it will ease its planned inheritance tax on farms, following months of nationwide protests since the 2024 announcement. From April, the threshold for individual inheritance tax relief will rise to GBP 2.5 million (USD 3.4 million) from GBP 1 million, reducing the number of farm owners facing higher taxes.
Environment Secretary Emma Reynolds said the changes aim to “protect more ordinary family farms” while ensuring larger estates contribute more. Under the revised rules, 100% relief applies up to the new threshold, with 50% relief on assets above it, and spouses or civil partners can pass on up to GBP 5 million (USD 6.8 million) in farm assets between them.
Tom Bradshaw, president of the National Farmers Union, welcomed the adjustment, calling the original proposals a “pernicious and cruel tax” and praising the government for listening to farmers’ concerns. The government estimates around 85% of estates claiming agricultural property relief in 2026/27 will avoid additional inheritance tax under the new rules.
