Farmers’ inheritance tax ‘time-bomb’ warning
- Accountancy experts are warning farmers that time is running out to prepare for inheritance tax changes that could force families to sell land held for generations.
- The Finance Act 2026 will impose fresh limitations on Agricultural and Business Property Reliefs from April 5, 2026. Under the new rules, 100 per cent relief will only cover £2.5m of qualifying assets per individual, with 50 per cent relief covering the remainder.
- Environment Secretary Emma Reynolds said the Government had “listened closely to farmers across the country and we are making changes today to protect more ordinary family farms”. She added: “It’s only right that larger estates contribute more, while we back the farms and trading businesses that are the backbone of Britain’s rural communities.”
- Rebecca Colmey, director of Tax Advisory at Azets, said problems began immediately after the 2024 budget when restrictions were announced without detail. The draft legislation ignored House of Commons recommendations for more generous relief for genuine farmers.
- Robert Anderson, a Partner at Azets’ Coventry office, warned: “We meet farmers every week and the stress and worry the policy is causing is undeniable.” He noted that most viable farming enterprises exceed £2.5 million in value.
- Many older farmers feel guilty about potentially letting their families down if they live beyond April 5. Anderson explained that farmers are often asset-rich but cash-poor, meaning parts of farms may need to be sold to fund inheritance tax liabilities.
- Experts urge farmers to seek professional advice immediately rather than “bury their heads in the sand and hope the problem goes away.”
READ THE FULL STORY: HMRC tax rule change on April 6, 2026 ‘time-bomb’ for one big group of people
