Farmers Campaigning for Agricultural Property Rethink
Post Author:
Anne Melville
Date Posted:
December 4, 2024
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The announcement in the UK Government Autumn Budget about restrictions to inheritance tax (IHT) agricultural and business property relief from April 2026 has upset farming businesses in particular, resulting in a demonstration in London on 19 November 2024.
From 6 April 2026, it is proposed that 100% relief will only apply to the first £1 million of combined agricultural and business property, with the relief reducing to 50% on the value that exceeds £1 million. This means the relief will be focused on small family farms and businesses. Prime agricultural land prices currently exceed £10,000 an acre and with the cost of a new combine harvester approaching £1 million, many farming businesses will significantly exceed the proposed £1 million threshold. At £10,000 an acre, that means the £1 million threshold would be exceeded by a 100 acre farm so paying the IHT may mean selling off some of that land and threatening the viability of the business.
It should be noted that the IHT in respect of agricultural property and business assets can be paid to HMRC by 10 interest-free instalments but those may be difficult to pay without selling off assets.
If you are a landowner concerned about Agricultural Property Relief after the UK Autumn Budget please register to join us at a seminar we are holding on on 10 December 2024 in Edinburgh:-
The information in this blog provides only an overview of HMRC guidance and legislation in force at the date of publication and no action should be taken without consulting the detailed HMRC guidance and legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this blog can be accepted by the firm.
